Options Insight: Own Gold as an Inflation Hedge?

The video discusses the divergence between the skew index and VIX, highlighting traders' expectations of lower short-term volatility but higher risk of market correction. It explains the implications of a high skew index and introduces a trading strategy involving the gold ETF (GLD) as an inflation hedge. The overlay strategy is detailed, focusing on selling cash covered puts to manage risk and add premium to a portfolio.

What does the skew index indicate in relation to the VIX?

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How do volatility traders' expectations differ in the short term according to the discussion?

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What is the significance of a high skew in trading strategies?

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What strategy is suggested for trading gold (GLD) in the context of inflation?

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Explain the overlay strategy mentioned in the context of trading gold.

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