Implied volatility is arguably the most important metrics to calculate and monitor in every options market. The implied volatility when analyzed over a certain number of strike prices becomes a so-called smile. However, the shape of volatility can vary and any change in the shape of the volatility curve signals that market participants are anticipating a specific market movement and they are preparing for it. The current research will go through the most important changes in the volatility curve and what is their implication in real life. This research was published on the Medium platform a few years ago but it is still valid today. Please click here to read the rest of the research.