What is Implied Volatility Related to Skew? By extending the definition of implied volatility to the market’s expectation of future realized volatility up to the chosen expiry AND in the proximity of the strike, we can understand better why different strikes should trade at different volatilities. This adds a spot conditionality to the implied volatility expectations, and in equities, we expect markets to become more volatile on the downside. Related articles What is Intrinsic/Time Value Graphic? What is Volatility Skew? What is Long Skew? What does "In The Money" mean? What is Implied Skew?