Sosnoff trying to explain IV skew to his latest newbie trader using the TastyWorks platform ... which somehow calculates significantly different IV's for same strike puts-calls 136 strike call / 14.36% 136 strike put / 11.61%
"Fake news." Think about this: if call IV and put IV was expected to be identical, there'd be no reason to calculate both sides. What you're citing as extraordinary is in fact an everyday occurrence. ToS or whatever -- it's the market.
Agreed There may be lots of good reasons ( poor data, dividends, liquidity, carry etc ) why IV might be slightly different for put-calls at the same strike, but unlikely to explain why calculates IV difference so large for GLD on TastyTrade platform ...
https://www.investopedia.com/terms/v/volatility-skew.asp from the link, " . . . provides information on whether fund managers prefer to write calls or puts." Is this a reason / clue, use, to consider? Anyone having good advice and feedback much appreciated. I don't yet trade options, but the limited risk gets more appealing with each passing month. The idea at this point would be to use same techniques used for trading nq etc futures, 2minute charts - 30 min charts, to daytrade options on stocks by selecting a close to 50% delta put or call to buy. My understanding is that no matter how skippy the market goes, my loss is limited to the money paid up front for the purchase of the calls or puts. I realize that selling them is a shark of a different color, and it's not in the idea yet. Would like links to strategies for that topic for years down the road though, if anyone has one or two handy. cheers
To the Google - there are literally dozens of papers - some are the just the abstracts for free, but if you want a bite of the apple search "equity options for asset allocation" and mix a cocktail. Ask yourself why skew exists in the first place and some will argue many fundamental managers don't know anything about volatility or skew, but they know if they can sell the $100 put @ $5 they become a buyer at $95 and that is their target buy or target asset allocation if I have new money coming in. Good hunting.