Option put call skew. Nov 7, - With the recent market volatility I wanted to cover a new topic and strategy. It's another tool to put in your box and a great way to take advantage of volatility skew in options pricing. As we all know implied volatility levels should really drive your trading strategy, and having a way to profit from different volatility.

Option put call skew

Option volatility SKEW Video

Option put call skew. Feb 3, - The jade lizard combines the short put and the short call strategies to take advantage of volatility skew with both put and call options. We sell a naked short put, which has higher implied volatility than its call counterpart, and we sell a short call spread, which involves selling high and buying low implied.

Option put call skew


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