BorgWarner Inc. (BWA) Volatility Skew
Implied volatility skew shows how IV varies across strike prices for a given expiration. Steeper skews indicate higher demand for downside protection relative to upside speculation.
BorgWarner Inc. (BWA) operates in the Consumer Cyclical sector, specifically the Auto - Parts industry, with a market capitalization near $13.72B, listed on NYSE, employing roughly 38,300 people, carrying a beta of 0.98 to the broader market. BorgWarner Inc. Led by Joseph F. Fadool, public since 1993-08-13.
Snapshot as of May 15, 2026.
- Spot Price
- $63.09
- ATM IV
- 43.0%
- IV Skew 25Δ
- -0.016
- IV Rank
- 40.4%
- IV Percentile
- 89.3%
- Term Structure Slope
- -0.002
As of May 15, 2026, BorgWarner Inc. (BWA) at-the-money implied volatility is 43.0%. IV rank is 40.4% (where 0% is the 52-week low and 100% is the 52-week high). IV percentile is 89.3%. The 25-delta skew is -0.016: skew is roughly flat across the 25-delta wings. High IV rank typically favors premium-selling strategies; low IV rank favors premium-buying.
BWA Strategy Selection at Current Volatility Levels
For BorgWarner Inc. options at 43.0% ATM IV, mid-range IV rank (40.4%) is the regime where directional conviction matters more than vol-regime positioning; strategy choice should follow the event calendar and the dealer-positioning view rather than IV rank alone. Pair the vol-rank read with the dealer-gamma view and the upcoming-events calendar to confirm the strategy fits both the structural regime and the path-dependent risk. The variance risk premium - the persistent gap between implied and subsequently realized vol - is positive in equity markets on average; high IV rank typically reflects a stretch where the premium is wider than usual.
Learn how volatility skew is reported and how to read the data →
BWA highest implied-volatility contracts
| Type | Strike | Expiration | Volume | OI | IV | Bid | Ask |
|---|---|---|---|---|---|---|---|
| CALL | $65.00 | Jun 18, 2026 | 60 | 6.4K | 42.4% | $2.45 | $2.65 |
Top 1 contracts from the ORATS-sourced nightly scan; ranked by iv within the broader S&P 500/400/600 + ETF universe.
Frequently asked BWA volatility skew questions
- What is the current BWA ATM implied volatility?
- As of May 15, 2026, BorgWarner Inc. (BWA) at-the-money implied volatility is 43.0%. IV rank is 40.4% on a 0-100% scale anchored to the 1-year IV range. ATM IV is the volatility input that makes a Black-Scholes-equivalent model reproduce the listed at-the-money option prices.
- Is BWA IV high or low historically?
- IV is near its 1-year median, a regime where strategy choice depends on directional conviction and event calendar rather than vol regime.
- What does BWA volatility skew tell options traders?
- Volatility skew is the pattern by which IV varies across strikes for a given expiration. BorgWarner Inc. skew is roughly flat across the 25-delta wings. Skew matters for risk-defined strategy selection: when downside puts are rich, put-credit spreads capture more premium; when upside calls are rich, call-credit spreads or covered-call writes harvest more.