📊 OPTIONS CONCEPT: VOLATILITY SKEW
Volatility skew compares implied volatility across different option strikes.
• 📈 Higher put IV → stronger downside protection demand
• 📉 Higher call IV → stronger upside option demand
• 🔎 Compare similar expiries
• ⏱️ Short-term and long-term skew can differ
• ⚠️ Skew shows pricing preferences, not guaranteed direction
Key takeaway: Skew can reveal which side of the market is paying more for optionality.
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