Hello everybody, I’m attempting to know 25-delta danger reversals and skew evaluation for choices (equities or VIX). May somebody clarify in a means that’s quick and simple to know, however nonetheless detailed sufficient to cowl the important thing factors:
What’s a 25-delta danger reversal and the way is it calculated?
How does skew evaluation point out market expectations or sentiment?
How can merchants interpret constructive vs. adverse values in apply?
Any easy examples that make the idea intuitive?
Thanks upfront for any clear, concise explanations!