A better volatility-smile model is not automatically a better hedge.

Public research brief

Options with different strikes do not necessarily respond to a spot move in the same way.

Che and Das extend the skew-stickiness framework by describing how the implied-variance surface changes in level, skew and curvature. Their empirical work studies SPX surface snapshots across maturities.

The practical appeal is more accurate shape-risk measurement. The question for a trading desk is whether that accuracy improves hedging or valuation enough to justify the extra estimation.

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