> For the complete documentation index, see [llms.txt](https://docs.kaiko.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kaiko.com/getting-started/kaiko-examples/gauge-market-sentiment-with-implied-volatility.md).

# Gauge market sentiment with Implied Volatility

Evaluate the market outlook for various dates using our [Kaiko Derivatives Risk Indicators](/rest-api/analytics-solutions/kaiko-derivatives-risk-indicators.md) solution. IV provides one figure that accounts for options contracts with various strikes and expiries, enabling a more accurate view of the overall market sentiment. For example, if an IV curve is steep to the left, this suggests the prevailing market sentiment sees prices falling.

<figure><img src="/files/bYDLXOPJmaqGmJFHmJ52" alt=""><figcaption><p>Here we see an IV smile across all expiries which means there is a high probability of price moves in either direction. There is a slight skew to the left on the shortest expiry (orange), suggesting higher demand on the short side.</p></figcaption></figure>

### How to build the request

With the Implied Volatility [smile](/rest-api/analytics-solutions/kaiko-derivatives-risk-indicators/implied-volatility-calculation-smile.md) endpoin&#x74;**,** you can use the following parameters. This example calculates just one expiry, but you can also run a script locally to request and combine expiries like the chart above. Contact our operations team for support with this.

| Paramater   | Value                    |
| ----------- | ------------------------ |
| base        | btc                      |
| quote       | usd                      |
| exchange    | drbt                     |
| value\_time | 2024-09-25T10:20:09.224Z |
| expiry      | 2024-06-28T00:00:00.000Z |
| deltas      | 0.05                     |

You can find specific asset codes from our [instruments explorer](https://instruments.kaiko.com/#/instruments) or [reference data](https://docs.kaiko.com/#assets).

### Example request

Here's an example of an HTTP string request using the values above.&#x20;

{% code overflow="wrap" %}

```url
https://us.market-api.kaiko.io/v2/data/analytics.v2/implied_volatility_smile?base=btc&quote=usd&value_time=2024-09-09T14:00:00.000Z&expiry=2024-10-25T00:00:00.000Z&exchanges=drbt&strikes=30000,40000,50000,60000,70000,80000,90000,100000
```

{% endcode %}

When you receive your response, search for the following fields to find the data you need:

* `implied_volatilities_strike`
* `implied_volatilities_implied_volatility`


---

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