As we approach Q3 earnings season, an interesting divergence is appearing in the derivative markets. While the SKEW, which measures the price of option tail-risk, is low for the S&P 500, the SKEW for individual stocks has been elevated. This reflects rising anxiety about possible blow-ups in individual stocks as earnings season approaches.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0F_n87Q-Ynb2qzwPWoBkk-ZC9KTL2gvcH7G8WdpvoL84mSU022lTWSOGN78FGoZaX8m4-phc882quf7xyr2Gy-mITeznc_cAhek2jNdGSjrK9r7xUkbTWKWj2gBGVewGManW2OyTptvuRYpc4pB4CN9k_HPChG_9_0pMnws0v6qYVsyRVA06Ai_uL8g/w400-h251/SKEW.jpg)
Still, a review of the risks shows that not all is at it seems below the surface.
The full post can be found here.