The Taming of the [Option] Skew
IBKR Podcasts
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How to Measure Your Options Skew
Traders tend to look at the historical skew of what things might look like for that product specifically. For instance, what does the SPX skew look like historically for that same maybe 30-day option over the last 10 years? That is also kind of infinitely customizable as far as what period of time you want to look at. And so if you look at something over a very long period of time like 10 years or 20 years, what you're going to end up with is something that's very noisy and has a lot of different regimes in it.
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