When downside hedging demand rises, the 25-delta skew spikes. Recent spikes have consistently aligned with short-term lows, signalling elevated fear and heavy short positioning. Useful for low-timeframe traders.
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When downside hedging demand rises, the 25-delta skew spikes. Recent spikes have consistently aligned with short-term lows, signalling elevated fear and heavy short positioning. Useful for low-timeframe traders.