What does each overlay on the Implied Volatility Dashboard's Term Structure graph mean? With the default view set to Expiration Date, there are three overlays that can be added to the graph: Forward Implied Volatility Adjustment Statistics Economic Events First, the Forward Implied Volatility Adjustment forecasts where Implied Volatility should be when you adjust for time. When the lighter adjusted line lies above the Implied Volatility curve for a given date, that means we expect volatility to actually be higher than the current Implied Volatility suggests for that date. This indicates a potential options mispricing. Conversely, when the Forward Implied Volatility Adjustment line is below the darker Implied Volatility curve, we expect volatility to be lower than the Implied Volatility for that date. Next, the Statistics view is toggled on by default in the Term Structure chart, showing an overlay of the 10th to 90th percentile range of historical Implied Volatility for options with the same days-to-expiration; this range represents where Implied Volatility typically falls. If the term structure reading falls above this range for a given date, that indicates Implied Volatility is above the 90th percentile. However, if a point on the term structure falls below this range, that means we only observe Implied Volatility this low in less than 10% of historical expirations. Lastly, the Economic Events Overlay flags dates of significant economic events that may affect volatility for dates with meaningful financial news. Related articles How do I add additional dates to the Implied Volatility Term Structure graph? What is the Volatility Skew Implied Volatility tab? What is covered in The Hedge's Senior Trader course? How will the Implied Volatility Dashboard to improve my trading approach? What is the SpotGamma Implied Volatility Dashboard?