# Dealer Edge Vol Scenario

> Implied volatility moves the hedges dealers need, not just the price of options. The Vol scenario card answers one question: if implied vol moved by this…

Source: https://tradeecho.com/docs/features/dealeredge/vol-scenario (updated 2026-09-25)

Implied volatility moves the hedges dealers need, not just the price of options. The **Vol scenario** card answers one question: **if implied vol moved by this much, where would dealers likely buy or sell to stay hedged?**

You find it in Dealer Edge **Focus** mode on the web app.

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## How to use it

1. **Pick the move** - slide implied volatility up or down, up to 15 vol points either way. The card suggests a starting move when an event is coming up.
2. **Pick the expirations** - the front expiry, all expiries, or the expiry that holds the next event (earnings or a scheduled macro release such as CPI or an FOMC decision).
3. **Read the chart** - each strike shows whether dealers would likely **buy** or **sell** to stay hedged, and the card highlights the strike with the **most pressure**.

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## Reading it well

- **Vol crush after an event.** Before earnings or a macro release, implied vol is often elevated. Sliding it down shows where the hedge flows would come from once the event passes.
- **Pair it with the heatmap.** Pressure that lines up with the Anchor, the Flip or a Defense Line matters more than pressure at an empty strike.
- **It is an estimate, not a forecast.** The card re-prices today's option chain assuming every contract's implied vol moves by the same amount. Real vol moves are uneven, and the chain changes through the day.

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## Next steps

- [Dealer Edge Quick Start](https://tradeecho.com/docs/features/dealeredge/quick-start)
- [GEX Heatmap Guide](https://tradeecho.com/docs/features/dealeredge/gex-heatmap-guide)
- [Anchor Points and Defense Lines](https://tradeecho.com/docs/features/dealeredge/anchor-points-defense-lines)