Skew in index ETFs makes the shortwider on the Put leg and narrower on the Call leg. This adds higher risks on the Call side than the Put side.
We have known that
- The stock price being higher than entry price
- The stock price being lower than entry price
- The stock price being the same as entry price
Ultimately, when looking at skewed Strangles in bullishly biased ETFs, the Put option more greatly influencedand increased the speed at which the strategy was a 50% winner.
For detailed analysis, watch the segment and see what Tom and Tony have to say about the relationship between Skew and Managing Winners.