In Crypto Options, How Does a Trader’s Quote Competitiveness Affect Their Implied Volatility (IV) Surface?

A trader's competitive quotes, particularly those frequently executed, validate the implied volatility (IV) they are using to price the option. If a trader consistently has the best quotes and high fill rates, it suggests their IV surface accurately reflects market consensus and liquidity.

Poor competitiveness might signal that their IV surface is misaligned, either too high or too low, relative to other market participants.