Implied volatility per strike against moneyness, with a cubic fitted
across the liquid strikes only. A dot is coloured only if its distance from the
curve exceeds that strike's own bid-ask noise. Everything grey scores exactly
zero and is ignored.
rich · IV above the curvecheap · IV below the curveinside its own spread · scores zero
2026-09-08 · calls
n=19 · degree 3 · rmse 0.059v
· 2 of 19 clear their own spread2026-09-08 · puts
n=17 · degree 3 · rmse 0.081v
· 3 of 17 clear their own spread2026-09-09 · calls
n=16 · degree 3 · rmse 0.081v
· 5 of 16 clear their own spread2026-09-09 · puts
n=11 · degree 3 · rmse 0.048v
· 1 of 11 clear their own spread2026-09-11 · calls
n=50 · degree 3 · rmse 0.321v
· 11 of 50 clear their own spread2026-09-11 · puts
n=41 · degree 3 · rmse 0.153v
· 12 of 41 clear their own spread2026-09-18 · calls
n=50 · degree 3 · rmse 0.432v
· 25 of 50 clear their own spread2026-09-18 · puts
n=45 · degree 3 · rmse 0.095v
· 20 of 45 clear their own spread2026-09-25 · calls
n=45 · degree 3 · rmse 0.102v
· 18 of 45 clear their own spread2026-09-25 · puts
n=47 · degree 3 · rmse 0.092v
· 28 of 47 clear their own spread2026-09-30 · calls
n=68 · degree 3 · rmse 0.410v
· 30 of 68 clear their own spread2026-09-30 · puts
n=55 · degree 3 · rmse 0.100v
· 27 of 55 clear their own spread2026-10-02 · calls
n=39 · degree 3 · rmse 0.083v
· 24 of 39 clear their own spread2026-10-02 · puts
n=39 · degree 3 · rmse 0.111v
· 24 of 39 clear their own spread
This is a measurement, not an edge. Across the live chain
only about a fifth of liquid strikes clear their own spread at all, and the median
one that does is worth roughly $3.94 per contract against a $4.00 median quoted
spread. Richness is therefore used only to break ties between strikes that are
already viable on liquidity, DTE and risk grounds. It is never a filter and never a
reason to trade. Method and limits: docs/research/smile-feasibility.md.