Put/call Skew Trend 2026

In options trading, put/call skew measures the difference in implied volatility between out-of-the-money puts and calls. A pronounced skew indicates market fear, as puts become pricier than calls. Traders use this to gauge sentiment, hedge downside risk, or structure premium-selling strategies. Portfolio managers, market makers, and sophisticated retail investors benefit by identifying overpriced protection or spotting potential reversals before price action confirms.