Volatility

Skew

IV difference across strikes

What is Skew?

Skew The difference in implied volatility between puts and calls at different strikes. Typically, OTM puts have higher IV than calls due to demand for downside protection.

Complete Definition

The difference in implied volatility between puts and calls at different strikes. Typically, OTM puts have higher IV than calls due to demand for downside protection.

Related Terms

Implied Volatility Volatility Smile

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