Credit Suisse's Xu Says 'Skew Is Askew Right Now'

The video tutorial discusses the concept of skew in financial markets, highlighting unusual trends such as increased volatility during market rallies and the flattening of skew in indices like the Russell. It contrasts retail and institutional investor behaviors, noting that retail demand is driving call options, while institutions are selling calls. The tutorial also examines the impact of options on stock movements, particularly during earnings seasons, and concludes with an overview of the derivatives market, emphasizing that it is not overwhelming the broader market.

How does the current pricing in the equity market reflect bullish sentiment despite rising volatility?

What are the implications of skew flattening in the context of the Russell index?

Discuss the role of retail investors in the current options market dynamics.

What trends have been observed in single stock dispersion during the recent earnings season?

Analyze the correlation trends in the S&P sectors and their implications for market behavior.