How to chart implied volatility term structure

What is IV term structure?

Implied volatility term structure shows ATM IV across different expiry dates. Normally it's upward sloping (contango) — longer-dated options have higher IV because more can happen over more time.

When it inverts

Before earnings announcements, near-term IV spikes above longer-term IV (backwardation). The market is pricing in a specific event. After the event, the term structure snaps back to contango.

Building the chart

Upload options chain data with multiple expiries. Quadesto extracts ATM IV for each expiry and plots the term structure, highlighting any inversion points.