3D visualization of implied volatility across strikes and expirations
3D Volatility Surface
IV across strikes and expirations
Understanding the Vol Surface
Volatility Smile
OTM options tend to have higher IV than ATM, creating a U-shaped pattern. This reflects market demand for tail-risk protection.
Term Structure
IV varies with expiration. A normal term structure shows higher IV for longer expirations; an inverted structure suggests near-term uncertainty.