Definition. Downside Implied Volatility measures downside-focused implied volatility derived from OTM puts, integrated across strikes and time-weighted to fixed tenors. In aggregate, it captures the premium the options market is paying for protection against falling prices. It is one of the two core components that underpin the Glassnode Skew Index.

Interpretation. Use alongside Upside Implied Volatility and the Glassnode Skew Index to diagnose whether call-demand (upside tails) or downside hedging is driving market asymmetry.

Notes. For further details, see Measuring Market Asymmetry: The Glassnode Skew Index.