> 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 [Derivatives Risk Indicators](/rest-api/analytics/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.

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.

### How to build the request With the Implied Volatility [smile](/rest-api/analytics/derivatives-risk-indicators/implied-volatility-calculation-smile.md) endpoint**,** 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. | Parameter | 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. {% code overflow="wrap" %} ```url https://us.market-api.kaiko.io/v2/data/analytics.v2/implied_volatility_smile?base=btc"e=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` --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.kaiko.com/getting-started/kaiko-examples/gauge-market-sentiment-with-implied-volatility.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.