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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 687.57+0.7%Dec 10 4:00 PM EST

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To: Underexposed who wrote (90828)3/21/2017 11:25:34 AM
From: John Pitera3 Recommendations

Recommended By
GROUND ZERO™
Hawkmoon
Underexposed

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the options skew in simple terms means that the cost of buying puts is much more expensive at the same out of the money strike price than buying calls at the same out of the money strike price.

that's the real 1 simple sentence answer. and this morning is the result..

Message 31037732

Cost of Protecting Against Market Swings Is at Its Highest Ever
by Cecile Vannucci
March 20, 2017, 7:53 AM EDT



While the CBOE Volatility Index declined last week, the cost of protecting against large market swings has surpassed a peak hit following the Brexit vote, reaching a fresh all-time high. With the Federal Reserve raising borrowing costs and the political environment remaining uncertain, the CBOE SKEW Index climbed for five straight days, its longest streak since June 2016. The last time the gauge of out-of-the money S&P 500 Index options prices was as high relative to the volatility gauge, the VIX surged 65 percent in the next month.

bloomberg.com
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