# Volatility Smile

### Options

Side

## Expiration

## Description

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 assumes a normal distribution, the options at the tail ends (deep ITM or OTM) of the curve typically tend to have a higher implied volatility than those in the more central portions, thus giving its characteristic smile.

## Embed Chart

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