Volatility Surface

3D map of IV across strikes and expirations

What is Volatility Surface?

Volatility Surface A three-dimensional representation of implied volatility across different strike prices (moneyness) and expiration dates. The surface captures both the volatility smile/skew across strikes and the term structure across expirations. Changes in the surface shape reveal shifts in market sentiment and risk pricing.

Complete Definition

A three-dimensional representation of implied volatility across different strike prices (moneyness) and expiration dates. The surface captures both the volatility smile/skew across strikes and the term structure across expirations. Changes in the surface shape reveal shifts in market sentiment and risk pricing.