Explain the Concept of a "Volatility Surface" in Crypto Options Trading ▴ Learn

Explain the Concept of a “Volatility Surface” in Crypto Options Trading.

A volatility surface is a three-dimensional plot that displays the implied volatility of options as a function of both their strike price (moneyness) and their time to expiration. In crypto, this surface often exhibits a "skew" (IV varies by strike) and a "term structure" (IV varies by expiration), reflecting different market expectations.

What Is a “Volatility Skew” and What Does It Imply about Market Expectations?

What Is a “Volatility Surface” and How Is It Used in Risk Management?

What Is the Concept of “Volatility Skew” in Options Markets?

How Does the Concept of “Volatility Skew” Affect Pricing for OTM Crypto Options?