Recent content by JetFlankRight

So you trade skew personally, if I understand what you're saying is you look at the break even points mainly? Or your model? So like for risk reversals or butterflies? I really like the idea of ditching models and thinking in terms of prices or just breakevens? To clarify one other thing, the...

Weekly options are basically just options with non standard expiry. I.e they are options that expire on a day that's NOT the 3rd Friday. So in May the "normal" options will expire on the 15th, weeklies might expire on the 8th, the 22 or the 29.

How do you go about pricing skew in a way to identify mispricings in skewed options? If ATM vol of a stock is 50, and say historical vol has been 55 (not that this would ever happen) you can have some basis for saying that vol is cheap. But how does this extend to skew? If ATM vol is 50, but...