Volatility Surface Charting

The volatility surface is a 3D-surface plot displaying implied volatility (Z-axis) by option delta (X-axis) and maturity (Y-axis). The shape of the surface provides information regarding where options are being heavily bid or offered or where market makers require more or less premium to hedge against gap risk. This information helps you determine which strike prices and maturities to choose when aiming for a specific option strategy.

You can view historical volatility surfaces by clicking the “Edit chart” button and selecting a date.