Discovertastylive: Market MeasuresHow Volatility Impacts Option Skew
How Volatility Impacts Option Skew

How Volatility Impacts Option Skew

Update: 2025-08-25
Share

Description

The market measure segment examined how volatility impacts option skew, noting that SPY typically shows put skew because downside risk commands higher premiums. As volatility increases, both calls and puts become more expensive as a percentage of the underlying, though puts increase at a faster rate highlighting why hedging after market moves is challenging.
Comments 
00:00
00:00
x

0.5x

0.8x

1.0x

1.25x

1.5x

2.0x

3.0x

Sleep Timer

Off

End of Episode

5 Minutes

10 Minutes

15 Minutes

30 Minutes

45 Minutes

60 Minutes

120 Minutes

How Volatility Impacts Option Skew

How Volatility Impacts Option Skew

tastylive