From Theory To Practice - February 12, 2021 - Spotting Upside Skew in Stocks
It’s not too often that we see upside skew in equities, especially not the index products. But from time to time, in the tech sector mostly, the market for individual stocks will be pricing in more risk to the upside than to the downside, for an equidistant move higher or lower. As we look to put on a new trade in TWTR at the end of today’s show, we see exactly that -- upside skew in the option chain.