Alex Longley, Bloomberg, has a nice chart showing the degree to which out of the money put options are in demand relative to out of the money calls… This is not surprising given the price move… It would be nice to see more historical data… I recall talking to a market maker who said the skew moved out to 12… This was in 1988, also when OPEC was in a bit of disarray…. The article is here… I don’t think this is news, but more another way of saying crude just moved down a lot… What would be news and more interesting would be to see a sharp move down in crude and a decline in the skew or a decline in vol…
by Jim Colburn Leave a Comment
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