Insane Inverted Skew

How To Adapt and Adjust

One of the stocks we looked at last week has a very unusual inverted put/call skew: instead of puts being more expensive than calls, calls are quoted at much higher prices than puts as you move further from the money. This is a big negative for investors who want to get long exposure — in this post we’ll look at ways to use the skew to get the cheapest entry point possible.