Posted 6/13/2018 12:35 (#6810420) Subject: Current state of the options markets
Volatility has gotten jacked up as of lately making options much more expensive. Traders are expecting some movement that’s for sure.
The real interesting one in the skew. It’s widened out which means trader are putting some risk premium into OTM calls. I wouldn’t say they are nervous yet, more so cautious about a move to the upside. But they are definitely watching.
This isn’t an indicator of a move higher.. Remember these metrics are adding risk premium into these markets and if that risk never shows up it will bleed out very,very quickly.