The probability above strike metric projects, given current implied volatility levels,
the cumulative probability of an underlying asset, such as BTC, reaching its target price.
<iframe width="768" height="360" frameborder="0" scrolling="no" src="https://gains.finance/options/btc/probability-above-strike?embed=true"></iframe>
The volatility curve refers to the 2D or 3D surface that one obtains by plotting
implied volatility against strike price. Given that implied volatility is calculated
using Black-Scholes, which assu...
In the futures world, the term structure refers to the 2D relationship between the different
prices and the different expirations of the dated futures. When talking about IV, the
term structure plo...
The implied volatility is a metric that captures the market's forward-looking
or expected volatility (measured in annualized standard deviation)
of an underlying asset, for example BTC. It is deri...