Hello everybody, first time poster here.
I have a conceptual question for option traders specialized in Volatility Skew.
If we take a look at any index product (or their ETFs) a noticeable skew is observed on the downside. For example, looking at OTM puts as of today (for the May 19th expiration, 46 days away) for SPY
SPY=235.33
Strike Price —– Implied Volatility (based on OTM Puts)
210 —– 19.09%
215 —– 17.16%
220 —– 15.21%
225 —– 13.27%
230 —– 11.31%
235 —–…