Short-term options may reveal different information about demand for hedging than long-term options. Investors with short time horizon or market speculators create demand for short-term options while investors with longer horizon may choose to trade long-term options to avoid costly renewal of hedges. Figures 4 shows IV spread for maturities 14 to 40 days (***Add here the 40 to 70 days maturity category***) . In the short horizon, the IV spread is downward sloping during low sentiment periods suggesting that investors hedge (or bet) for large losses. The IV spread during high sentiment periods is upward sloping suggesting relatively lower demand for deep-out-of-money and out-of-money puts and relatively large demand for the deep-out-of-money and out-of-money calls. This change in demand could be generated by short term speculations during extremely optimistic times.