SurlyTrader has an excellent post on the current S&P 500 (SPX) implied volatility skew. Essentially, he tells us that the current implied volatility skew levels are near highs. What does that mean? He made the following statement on April 4, 2011 and makes it again:
Of course there is no one perfect predictor of market tops and bottoms, but I will say that this peak stands out and should be noted. It certainly does not give me a comfortable backdrop for being overly bullish.
Read the rest of the post: Is Skew Signalling a Pullback?
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Options Trading
Implied Volatility Skew and What It Tells Us
SurlyTrader has an excellent post on the current S&P 500 (SPX) implied volatility skew. Essentially, he tells us that the current implied volatility skew levels are near highs. What does that mean? He made the following statement on April 4, 2011 and makes it again:
Read the rest of the post: Is Skew Signalling a Pullback?
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