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View every strike volatility and look back on how they have moved over any time period or compare different months entire volatility curve  live

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skew

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Skew is the graphical image of Implied Volatilities of a particular Stock/Future expiry displayed in strike or Delta space. Skew is simply drawing a line to connect these various points. The Skew graph can take on three different characteristics. The Security can have a Normal Skew, Positive Skew, or Negative Skew. Normal Skew is actually quite rare as it is a skew curve that looks like a “U”. The current price (At the money) implied volatility is the cheapest along the curve with equal weighted risks to both the call and put side. A positive Skew is when the Call side implied volatility is much more expensive than the Put side. A Negative Skew is the opposite as the Put side is more expensive than the Calls. There are various drivers of Skew, but the easiest to explain and understand is in an equity index. The negative skew is extremely obvious in the Indices as Put options are a natural hedge for asset managers, hedge funds, pension funds, and others who are all invested on the long side of the market.

What is skew?

Option traders need to know about Skew for three main reasons. First, it is incredibly important to know if an option is rich or cheap compared to other delta options. Second, it is equally as important to know whether a particular option is historically rich or cheap compared to itself. Mean reversion is a sound trading strategy because historically rich or cheap options do tend to revert back to normal levels. Third, the shape of a particular Skew will help the trader with strike selection in a structure. For example, if I as a trader am bullish Tesla stock and want to express my view using options. There are numerous structures that I can choose from, but which one? If the 30 Delta call is the low point on the skew curve and call skew goes aggressively higher, it may be a smart play to take advantage of that steep skew and buy the 30 delta Call as part of a vertical Call spread.

How does knowing the skew help a trader?

Leviathan has Skew analysis that is second two none. Leviathan Skew allows its members to analyze Skew in to very distinct ways. First, the trader can look at one single expiry over many historical time frames. Second, the trader has the ability to look at all of the expiries of a particular stock/future and compare those with each other. This knowledge now allows the trader to make an informed decision as to whether the skew was historically rich/cheap, and if so, which expiry is the richest/cheapest. With this knowledge now in hand, the trader can intelligently implement their strategy with confidence.

How can Leviathan help with Skew?

Using the world’s most powerful html5 charting system with 100s of studies you can easily chart any option, future or equity combination imaginable 

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Leviathan Line Chart - The World's Most Powerful Financial Analysis Chart system with 100's of available studies Mobile responsive. Stay ahead with Leviathan, leave it to us we do all the leg work

What is line chart?

Technical analysis focuses on examining and anticipating price movements in financial markets. Technical analysts learn to identify historical market patterns so they can predict forthcoming market trends and make smart trending decisions based on those predictions. Not surprisingly, an enterprise technical analysis solution helps visualize movements and patterns in a meaningful way.

Why is technical analysis so important?

When you have an option strategy, future, or equity in mind it is as easy as 1,2,3 with LeviathanFM. We are the only service that can easily provide historical charting on complex options strategies with a click of a button. With 100's of different studies, you can visualize options historically or within a specific time span and view events that occur within it as it relates to the market and analysis all the relevant data points allowing you to comprehend the interrelationship between options and complex events.

How can Leviathan help with line chart?

Using the world’s most powerful html5 charting system with 100s of studies you can easily chart any option, future or equity combination i

Line Chart

<p>View every strike volatility and look back on how they have moved over any time period or compare different months entire volatility curve  live</p>

Skew

US PCE Price Index YY * (Jul 2023) 3.3% vs. Exp. 3.3% (Prev. 3.0%)

[video width="1920" height="938" mp4="https://leviathanwebstorage.blob.core.windows.net/wpstorage/2023/02/skew-help.mp4"][/video] The Skew P

SFRA Skew has flattened over the past month due to heavy buying of wings via Call trees, Call 1x2's, and the unwinding of long downside stru

Skew

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Skew

SFRA Skew has been pummeled over the past month...

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