it does, but in the end it doesn't really matter. Your job is to sell overpriced, buy underpriced and manage your inventory along that. So if you're quoting 6 month wings at 20 vol bid/25 vol offered and someone lifts you, you buy ATM at 18 vols and reprice your offer on the wing to 27vols. if you get lifted again while ATM is still offered at 18 you reprice to let's say 29. If nobody comes in to hit your bid at 20, you reprice it to 21 and when the ATM shows 19 vols offered you shift your entire wing quote 2 vols up. You do this until your bids get hit and you made the spread or - if you keep getting lifted - the skew is so steep that you can hold your inventory into terminal distribution for a large edge because you have a good average. I mean, if you sell 10 delta wings at 2$ while you can hedge yourself in the ATMs for 2$ you basically have a risk free position that you can hold for a long time, right? When you reprice your quote to a point where you get executions on both sides that's where the fair market price is. The "art" - and this is why traders are always talking about risk management is to get to the point where you have two way flow without killing your average price. If fair value for the wing is at 29 vols or 10 vols over ATM whereas your average is at 8 vols over ATM you either have to wait until it trades back to 8 vols for you to cover at even and miss that opportunity to capture two way flow or you risk it and overleverage on your inventory, sell massively at 12 vols over ATM to raise your average...or blow up. So the question is: how much do I quote and how wide should I quote until I arrive at the fair price. There is a standard paper that deals with these questions: https://www.math.nyu.edu/~avellane/HighFrequencyTrading.pdf