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The ECB Is Cornered | Imran Lakha

Market Depth

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Is Skew Trading in a Range?

Skew is where we compare the implied vo of puts versus cooled downside, puts versus upside colls. It gives us a feelfor how scared and fearful the market is about certain things. If skew really starting to go one way, that's telling you the options market participants are getting ready for a directional shift in that direction. But when the spot then does actually move in the direction of skew, it can often be a counter signal.

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