Join us in Chicago for an amazing weekend! tastytrade proudly presents Learning Man!

Event Details

Best Practices

Weekdays 8:00 – 8:20a CT

Volatility Skew

Best Practices

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

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!

Best Practices More installments

See All »

Latest tastytrade Videos As of November 11

Most Shared From the last 30 days