How To Make Smarter Trading Decisions...

[Company Logo]() Don here... If you're keen on options trading like I am, you'll appreciate what I'm about to share. Having spearheaded education at thinkorswim and TD Ameritrade for 15 years, I've picked up a few tricks that move beyond mere theoretical knowledge. Today, I want to dive into a critical yet often overlooked aspect of the options market—strike skew. This isn't just jargon; it's a practical tool that seasoned traders use daily to refine their strategies, though many enthusiasts rarely give it a second thought. Why Strike Skew Matters The concept is straightforward: options pricing is driven by supply and demand, affecting their implied volatility. When you examine a series of options, you’ll notice they display varying levels of volatility. This variation? That's strike skew, and it can tell us a lot about market sentiment. For instance, consider Goldman Sachs with its upcoming earnings. The call skew shows a decrease in implied volatility as we move out of the money, suggesting a hedging trend among stockholders. This reflects an expected price move within about 4.5%, with no substantial demand for deep out-of-the-money calls. Exploring Types of Strike Skew - Call Skew: A flat or downward slope indicates less concern about sharp upward price movements. - Put Skew: A volatility smile shows higher volatility at both in-the-money and out-of-the-money strikes, hinting at uncertainty or hedging against significant price changes. Real-Time Examples - Tesla's calls are seeing rising implied volatility further out of the money, hinting at speculators betting on an upward move. - NVDA's puts demonstrate increasing volatility as strikes decrease, indicating concerns over potential drops. = These insights are not just academic; they're actionable. Understanding skew can help you craft more nuanced strategies that create low risk high rewards scenarios if you're looking to generate income or quickly grow an account. Don’t miss the next part of my masterclass this Tuesday, where I'll delve deeper into applying these concepts to real-world trading. You can review Part 1 in preparation here: [watch the replay]() by Tuesday. This knowledge isn't just useful; it's crucial, especially as we gear into earnings season. Make sure to tune in and transform how you trade with advanced insights that could tilt the market in your favor. I’m excited to unpack more secrets of strike skew with you. Add the event to your calendar and join me on Tuesday at 1 PM ET! [Add this event to your calendar now.](=) Speak to you soon, Don Kaufman Chief Market Strategist Having trouble viewing this email? Click here Disclaimer: Neither TheoTrade or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial adviser, registered investment adviser, registered broker-dealer or FINRA|SIPC|NFA-member firm. TheoTrade does not provide investment or financial advice or make investment recommendations. TheoTrade is not in the business of transacting trades, nor does TheoTrade agree to direct your brokerage accounts or give trading advice tailored to your particular situation. Nothing contained in our content constitutes a solicitation, recommendation, promotion, or endorsement of any particular security, other investment product, transaction or investment.Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past Performance is not necessarily indicative of future results. TheoTrade 16427 N Scottsdale Rd Suite # 410 Scottsdale, Arizona 85254 United States 1 (800) 256-8876 If you no longer wish to receive our emails, click the link below: [Unsubscribe](