Telephone and Data Systems, Inc. (TDS) 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.
Telephone and Data Systems, Inc. (TDS) operates in the Communication Services sector, specifically the Telecommunications Services industry, with a market capitalization near $4.49B, listed on NYSE, employing roughly 7,900 people, carrying a beta of 0.34 to the broader market. Telephone and Data Systems, Inc. Led by Walter Carlson, public since 1981-12-15.
Snapshot as of May 15, 2026.
- Spot Price
- $40.81
- ATM IV
- 31.5%
- IV Skew 25Δ
- 0.097
- IV Rank
- 2.2%
- IV Percentile
- 14.3%
- Term Structure Slope
- 0.151
As of May 15, 2026, Telephone and Data Systems, Inc. (TDS) at-the-money implied volatility is 31.5%. IV rank is 2.2% (where 0% is the 52-week low and 100% is the 52-week high). IV percentile is 14.3%. The 25-delta skew is +0.097: calls carry premium over puts, indicating upside speculation or squeeze risk. High IV rank typically favors premium-selling strategies; low IV rank favors premium-buying.
TDS Strategy Selection at Current Volatility Levels
For Telephone and Data Systems, Inc. options at 31.5% ATM IV, low IV rank (2.2%) favors premium-buying or long-vol structures: long calls or puts, debit spreads, calendar spreads, long straddles. The risk: low-rank regimes can persist for months while time decay eats premium-buyers alive. The 25-delta skew tilts to calls, so call-credit spreads or covered-call writes harvest more premium than put-credit spreads of the same width. 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.
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Frequently asked TDS volatility skew questions
- What is the current TDS ATM implied volatility?
- As of May 15, 2026, Telephone and Data Systems, Inc. (TDS) at-the-money implied volatility is 31.5%. IV rank is 2.2% 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 TDS IV high or low historically?
- IV is subdued relative to its 1-year history, conditions that typically favor premium-buying strategies (long calls, long puts, debit spreads, calendar spreads).
- What does TDS volatility skew tell options traders?
- Volatility skew is the pattern by which IV varies across strikes for a given expiration. Telephone and Data Systems, Inc. shows upside-skewed pricing: 25-delta calls trade richer than 25-delta puts, often reflecting upside speculation or squeeze risk. 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.