FOMO And NDX Option Skew - When Expensive Calls Are Justified
The article examines the implications of elevated Nasdaq-100 (NDX) option skew on market performance. It highlights the relationship between rising call implied volatility and the phenomenon known as 'Fear of Missing Out' (FOMO) among traders. The findings suggest that extreme call skew may indicate bullish sentiment in the market.
- ▪The article focuses on the Nasdaq-100 (NDX) and its option skew.
- ▪It analyzes the conditions under which call implied volatility rises relative to put implied volatility.
- ▪The concept of 'Fear of Missing Out' (FOMO) is discussed in relation to option trading.
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