Skew is present in a market if equidistant out-the-money options are trading more expensive on one side relative to the other.
Skew in markets we are looking for scalping trade opportunities in may cause us to use asymmetric trade entries, whereby we wait longer before entering positions on the side experiencing skew.
Skew can affect our options strategies as well, making some strategies favorable over others depending on what side the skew is on.
Most equity markets show skew to the downside as the fear of a crash looms in these markets.
Crude oil usually shares put skew with stocks, but recently the fear has been pretty even on both sides of the crude price.
Corn and soybeans have both been seeing a lot of call skew recently, but their skew can change if the market moves far in one direction.
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