> ## Documentation Index
> Fetch the complete documentation index at: https://financecontext.com/llms.txt
> Use this file to discover all available pages before exploring further.

# /analyze-option-vol

> Analyze option volatility with vol surface, Greeks, and implied vs realized vol comparison

## What is Option Volatility Analysis?

Options are financial contracts that give the holder the right (but not the obligation) to buy or sell an asset at a specific price by a specific date. The price of an option depends heavily on **volatility** -- how much the underlying asset is expected to move. Higher expected volatility means options are more expensive.

**Implied volatility** is the market's forecast of future volatility, derived from current option prices. **Realized volatility** is how much the asset actually moved historically. The difference between the two -- the **volatility premium** -- tells you whether options are cheap or expensive. If implied vol is significantly higher than realized vol, options are "rich" (expensive); if lower, they are "cheap." This is the fundamental input to most options trading strategies.

The **volatility surface** maps implied volatility across different strike prices and expiration dates, revealing the market's view of risk. The **Greeks** (delta, gamma, vega, theta) quantify how an option's price changes with different market factors.

## Command

```bash theme={null}
/analyze-option-vol <underlying e.g. .SPX or EURUSD> [strike] [expiry]
```

Analyzes the volatility environment by generating the vol surface, pricing options with full Greeks, and comparing implied vs. realized volatility.

## Workflow

<Steps>
  <Step title="Generate Vol Surface">Calls `equity_vol_surface` or `fx_vol_surface` to get ATM vol, risk reversals, and butterflies across tenors.</Step>
  <Step title="Discover Option Templates">Calls `option_template_list` for available types, expiries, and strikes.</Step>
  <Step title="Price the Option">Calls `option_value` to get premium, delta, gamma, vega, theta, and implied vol.</Step>
  <Step title="Compute Realized Vol">Calls `tscc_historical_pricing_summaries` for 1Y daily data. Computes 20-day, 60-day, and 90-day realized vol.</Step>
  <Step title="Synthesize">Presents vol surface summary, Greeks, implied vs. realized comparison, vol regime assessment, and strategy recommendations.</Step>
</Steps>

## Output

Lead with key vol finding (implied rich/cheap vs. realized). Follow with surface summary, option pricing, Greeks, and detailed comparison.

## Related Skill

See the [Option Vol Analysis skill](/en/partner-built/lseg/skills/option-vol-analysis) for domain knowledge on vol surface interpretation and Greeks analysis.