Volatility Smile

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Dictionary Says

Definition of 'Volatility Smile'

A common graphical shape that results from plotting the strike price and implied volatility of a group of options with the same expiration date.

Volatility Smile
Investopedia Says

Investopedia explains 'Volatility Smile'

A volatility smile is used by investors to price options in the foreign currency market and the equity option market.
Search results for

'Volatility Smile'

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    ... as seen in the northeasterly, upward sloping shape of the skew, which forms a smile,
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  • Commodity Prices And Currency Movements

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    ... Similar volatility can be seen in the price of gold, which hit $1600 an ounce in ...
    at the beginning of 2008, when record-high oil prices put a big smile on the ...

  • Commodity Prices And Currency Movements

    http://www.investopedia.com/articles/forex/06/commoditycurrencies.asp
    ... Similar volatility can be seen in the price of gold, which hit $1600 an ounce in ...
    at the beginning of 2008, when record-high oil prices put a big smile on the ...

  • Options Greeks: Theta Risk and Reward | Investopedia

    http://www.investopedia.com/university/option-greeks/greeks4.asp
    ... the so-called "silent killer" of option buyers, can wipe a smile off the ... a
    wrong-way price move) and from an adverse change in implied volatility (since higher ...

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