Smirk
A variant of the volatility skew where the implied-volatility curve across strikes shows a pronounced asymmetric tilt — one wing materially higher than the other — without the upward turn on both sides that defines a smile. In equity-index options, the typical shape is a put-side smirk: out-of-the-money puts trade at materially higher IV than out-of-the-money calls, with the call wing flat or even declining. The smirk is the dominant shape in S&P 500 options and reflects structural demand asymmetry between long-only buyers of downside protection and the (much smaller) buyer base for upside speculation.
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Related terms
American Option · Asian Option · Barrier Option · Basket Option · Butterfly Spread · Calendar Spread
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