What is SKEW When It Comes To Options

Welcome to our deep dive into **Options Skew** with Robert Thompson III from RLT! In this video, we break down the intricacies of options skew, its types, and how traders can effectively use it in their strategies. If you're an options trader or looking to understand the world of options better, this is a must-watch!

Timestamps:
- 0:00 - Introduction to Options Skew
- 1:15 - What is Options Skew?
- 2:30 - Call Skew vs. Put Skew
- 4:20 - Determining Skew using Out-of-the-money Options
- 6:45 - SPX (S&P 500) as an Example
- 9:00 - Importance of Going Out-of-the-money
- 11:10 - Using Tastytrade's Analysis Tool
- 13:40 - Identifying Skew at the Money vs. Out-of-the-money
- 16:00 - Practical Examples of Call Skew
- 18:30 - How to Use Skew in Trading Strategies
- 20:00 - Conclusion & Wrap-up

**Key Points**:
- Options skew refers to the difference in implied volatility between contracts that share an expiration.
- It's categorized into either **call skew** (expectation of a significant price rise) or **put skew** (hedging against a potential large drop).
- Using the SPX as an example, puts generally have more skew than calls.
- Skew can be utilized in trading strategies, with selling puts often being more profitable due to the prevalent put skew in the markets.

**Keywords**: Options Skew, Call Skew, Put Skew, Implied Volatility, Out-of-the-money Options, SPX, S&P 500, Tastytrade, Trading Strategies.

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