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If we know the options Implied Volatility (IV) skew for an equity, is it possible to calculate the probability of the equity moving, given a move in the IV?
We can define IV skew as the difference between IV at delta 0.25 compared to IV at delta 0.75.
The skew alone is not enough. You can see this by noting the one-to-one correspondence between volatility skew and terminal probability distributions, which is independent of price and volatility dynamics. (See my answer at How to derive the implied probability distribution from B-S volatilities? for a derivation of that dependence)
Now, if you choose a non-Black-Scholes model (such as the Heston model) and calibrate it, then you can use that model to compute, say, the maximum likelihood equity price given a certain level of implied volatility.
