Volatility Surface
A 3D picture of implied volatility across every strike and expiry at once.
Definition
The volatility surface is a three-dimensional map of implied volatility plotted against strike price on one axis and time to expiry on the other. It shows that the market does not price every option with a single volatility — instead, IV varies by both moneyness and maturity.
Why it matters
The surface combines two well-known patterns. Across strikes you see the volatility skew (or smile): out-of-the-money puts usually carry higher IV than calls because traders pay up for downside protection. Across expiries you see the term structure: near-dated and far-dated options often imply different volatility. Reading the surface helps you judge whether a particular strike and expiry is rich or cheap relative to its neighbours, which is central to relative-value and spread trading.
Example
On a Nifty surface you might see the 21,500 put (well out of the money) implying 18% volatility while the at-the-money 22,000 strike implies 14% and the 22,500 call implies 13%. That downward slope from low strikes to high strikes is the equity-index skew, and it would form a smooth sheet once you add the weekly, monthly and quarterly expiries.
See it live
TradePulse shows live implied volatility for every Nifty strike and expiry so you can map the skew yourself.