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The Taming of the [Option] Skew

IBKR Podcasts

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How to Use Skew to Analyze Markets

Traders can look at sort of its historical average and see how it compares to it currently. High puts skew doesn't always mean that people are really worried about the downside. It may just be one person who's buying a lot of puts, so make sure you pay attention to that as well.

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