After a year of almost uninterrupted bullish bias in precious metals options markets, gold skews (the ‘price’ of put protection over calls) has exploded to its highest (most bearish) leves since July 2015.
As Bloomberg reports, bearish options hedging against a 10 percent price drop in the biggest gold exchange-traded fund cost the most since July 2015 relative to calls betting on a 10 percent jump.