25-Delta Risk Reversal & BTC Options Skew

The 25-delta risk reversal is the implied-volatility difference between the 25-delta call and put. It shows the demand skew: bullish (calls richer) or bearish (puts richer).

What is the 25-delta Risk Reversal

The risk reversal measures the asymmetry of the volatility smile: it equals the 25-delta call IV minus the 25-delta put IV. Positive means calls are richer than puts (bullish skew); negative means puts are richer (demand for downside protection).

Reading skew and sentiment

The risk reversal trend is a fast sentiment gauge: rising into positive shows bullish appetite, moving negative shows fear and downside hedging. Skew is especially useful near key levels and ahead of expiry.

For a full walkthrough with the volatility smile, see the Academy article on the 25-delta risk reversal and skew.

FAQ

The IV difference between the 25-delta call and put: positive is bullish skew, negative is demand for downside protection.

The risk reversal numerically measures skew (the smile asymmetry) at the 25-delta point.

See 25-Delta Risk Reversal & Skew live for BTC and ETH in the GEX Terminal module.

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Other terms

GEX — Gamma Exposure Gamma Flip Point Max Pain Order Book Limits & Liquidity Walls Call Wall & Put Wall Open Interest Hedging Pressure Absolute GEX Implied Volatility & Volatility Smile Margin Loans (Binance margin pool)

Information is for analytical and educational purposes only and does not constitute investment advice. Cryptocurrency trading carries high risk.