Correctly using option volatility skew via charts is a great way to choose and pick entry and exit points for options trading. We always look at the VIX of course to see if it’s getting too far stretched in one direction or another. Right now we have seen a huge rebound from the low 20′s to the mid 30′s in a very short time.
This of course is great for option sellers/writers who want to take advantage of the higher premiums. For those option buyers out there you might just want to wait a bit longer before jumping into any new trades.
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