Trader Hao Highlights the Importance of Implied Skew in Options Markets
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According to Greeks.live, legendary trader Hao emphasizes that implied skew in options markets holds significant predictive power. Implied skew refers to the difference in implied volatility (IV) between out-of-the-money (OTM) puts and calls. This metric provides valuable insights into market sentiment and potential price direction. Specifically, if the IV is higher for OTM puts, it suggests a bearish sentiment among traders.
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