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"Skew"
Great blog! I have been trading butterflies lately on individual stock names and trying to learn about them. I’m fairly new to options and love the added dimension of volatility. You mention in your blog that skew is important for flies since you’re short the body and long the wings. So a flat skew would [...]
Here’s an update on the state of implied volatility and implied volatility skew of S&P 500 and Russell 2000 options. It’s very important to know where you are in IV terms when trading these two indexes.
Transcript below:
Hey this is Victor Mora of vicmora.com and today [...]
Here’s a quick video on the state of implied volatility and skew of the S&P 500 & Russell 2000 options:
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- Implied Volatility Skew and What It Tells Us
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Implied Volatility Skew and What It Tells Us
SurlyTrader has an excellent post on the current S&P 500 (SPX) implied volatility skew. Essentially, he tells us that the current implied volatility skew levels are near highs. What does that mean? He made the following statement on April 4, 2011 and makes it again:
Of course there is no one perfect predictor [...]