Why does a stock’s skew become flat when markets get volatile? If you’ve ever wondered how the shape of skew changes during turbulent times, this article will provide you with the answers.During periods of high volatility, a slope that is typically associated with skew tends to flatten out. As a result, the implied volatility difference […]
capacity, that might have been 50 cents or a dollar. so the good news for the u.s. consumer is we re better prepared for this type of disruption. but we re not going to be totally covered if all-out war breaks out in the middle east. bill: phil, i want to show our viewers at home a happen of the area. two strangleholds, one is the strait of hormuz, strait of hormuz, i should say, right near iran. that s a pretty good ways away unless this were to escalate and iran gets involved. the bigger concern is the suez canal just to the left of where you see the name of the country israel. now, there are numbers on wall street and also there in chicago showing that this is the biggest risk we have seen now in about two years on the energy market. is that what you see? that s exactly what we re seeing. the option premiums are saying that the risk to supply is at the greatest level it s been since the beginning of the arab spring and the libyan conflict. so this is huge, and it could be one of t