SKEW index... anyone use it

Discussion in 'Trading' started by KCalhoun, Dec 27, 2020.

  1. KCalhoun

    KCalhoun

  2. noddyboy likes this.
  3. noddyboy

    noddyboy


    Isn't it based on OEX options? Do those even matter anymore with all the Robinhood guys doing TSLA options?
     
  4. SunTrader

    SunTrader

    I note this from link:-

    In practice the SKEW index has been a poor indicator of stock market volatility. Financial writer Charlie Bilello observed data from the biggest one-day falls in the S&P 500 and the SKEW Index preceding these falls. "Going back to 1990, none of the worst declines had a SKEW Index in the prior month that was within the top 5% of historical values. So, when actual tail risk was present, SKEW did not predict it," Bilello said.
     
    KCalhoun likes this.