Volatility and Skew

[MarkSebastian]

How deep into IV do you guys get when you trade? Are you using skew and term structure or just using 30 day IV or something along those lines? Do you guys ever use skew at all, the more I look the more I do not see people paying attention to this.

-Mark

 

[Martinghoul]

Deep, v v deep

 

[sonoma]

Quote from MarkSebastian:

How deep into IV do you guys get when you trade? Are you using skew and term structure...

Sure. It's not the only factor, but you can take advantage of certain circumstances that happen occasionally. Then there are the discrepancies that occur only once a decade that you have to look at.

Quote from MarkSebastian:

Do you guys ever use skew at all

Sure

Quote from MarkSebastian:
the more I look the more I do not see people paying attention to this

Then they're missing out.