Strike Price vs Volatility Smile

The fixed price at which the holder of an options contract has the right to buy (call) or sell (put) the underlying cryptocurrency asset; also termed exercise price; determines moneyness (in-the-money, at-the-money, out-of-the-money) at any given moment.

The pattern that emerges when implied volatility is plotted across option strikes for the same expiry; deviates from the flat IV assumed by Black-Scholes; in crypto markets, both OTM calls and OTM puts often carry higher IV than ATM options, reflecting two-sided tail risk expectations.