All termsImplied Volatility and Volatility TradingWorth knowing
Volatility Smirk
A volatility smirk is an asymmetric implied volatility pattern across strikes rather than the more symmetrical shape suggested by a volatility smile.
Why it matters to you
Many real markets show stronger demand or perceived risk on one side of the distribution. Equity markets, for example, may display substantially higher implied volatility for downside strikes.