The Importance of Stability of the Volatility Surface

In illiquid assets it is difficult to draw a volatility surface that is consistent with the observable prices in the market. This can happen because you have missing strikes or matrices that appear and disappear. You also need to be able to extrapolate in a non-elbitarable fashion, both in strike and time. And then lastly, but not to be forgotten: you need to ensure that you have a stability of the surface.