Surface Widget: 3D Implied Volatility Surface

Surface

Implied volatility across every strike and expiry as one 3D surface, so skew and term structure can be read together.

Surface draws implied volatility for every strike (one axis) and every day to expiry (the other) as a single 3D surface, colored from low to high IV. It combines what IV Smile shows for one expiry and what IV Term Structure shows at the money. Drag to rotate, scroll to zoom, and use the toolbar to reset the view. Details can switch the surface to open interest or volume instead of IV.

Marked (Beta) in the widget picker: it is newer, and some of the options data behind it can lag the live market by several minutes.

Practical application#

Surface widget, illustrative example: a raised front edge and a downside tilt — Illustrative example data, not a real session. NQ calls, IV surface: the shortest expiries are lifted toward 30% and above, while the back flattens near 21 to 23%; IV rises toward lower strikes at every expiry.

Reading it. Two shapes stand out. Along the days-to-expiry axis, the front edge is lifted: the shortest expiries sit around 30% and higher, then the surface drops quickly and flattens near 21 to 23% from about two weeks out. Along the strike axis, the surface tilts up toward lower strikes at every expiry, steepest in the front.

What it means. This is the same market as the term-structure and smile examples, seen at once: a near-term event priced into the first few expiries, and demand for downside protection that is strongest close in.

How to use it.

A raised front edge: short-dated options are expensive. Expect bigger moves around the event, and a quick drop in that premium after it.
A tilt toward low strikes: puts carry the premium; the market fears a drop more than it chases a rally.
A flat surface: a calm market, with little event or crash premium.
Rotate the surface to look straight down the strike axis for the term structure, or down the expiry axis for the skew.