Volatility Views 17: Busting Volatility Skew Myths

Published: Aug. 17, 2011, 9:27 p.m.

Volatility Views 17: Busting Volatility Skew Myths

VOLATILITY REVIEW:\xa0 The debt ceiling deal and its effect on the market. Euro VolContracts trading on the CME.

VOLATILITY VIEWPOINT:\xa0 Busting Skew Myths!!!! Does the Lottery Effect actually exist? Do flaws in the Black-Scholes model create skew? Were options traders prior to 1987 completely insane? Also, an exploration of the fundamental and psychological causes of Equity/Investment skew.

CRYSTAL BALL:\xa0\xa0 An outlook on the weekend risk- What could happen?\xa0 PLUS:\xa0 Mark Sebastian gives his forecast for the coming week.