When looking for information on Volatility Skew, it is very easy to get different answers on what it actually is. These can range from the SKEW index provided by the CBOE to the difference in volatility when looking at calls compared to puts. For this reason, it's important to take a step back and put some context around what volatility skew actually is.
Today, Tom Sosnoff and Tony Battista discuss volatility skew and what it means. The guys talk about why skew exists, provide some examples of skew and explain a strategy that will look to take advantage of skew. Finally, they wrap up the segment by showing an example of an underlying that is not experiencing volatility skew and talk about how you can take advantage of this!
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