· AQT Academy· Sources: CNBC
Definition
Volatility surface: implied vol as function of strike and maturity. Skew: put vol vs call vol. Term structure: near-dated vs far-dated vol.
Interpretation
Steep skew signals demand for downside protection. Inverted term structure often precedes volatility spikes. Surface shape informs option overwriting and hedging.
Reference: https://www.cboe.com/
Not investment advice. For informational purposes only. Sources: CNBC.
