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AAPL 25Δ put IV is 22.6% vs 75Δ call IV 24.6% — measuring downside protection cost.
Apple Inc. — 25Δ put/call IV ratio, 60-day trend, and earnings inflation
Volatility skew measures how the options market prices downside protection (puts) compared to upside (calls). When 25-delta puts cost more than 25-delta calls, the market is paying a premium for hedging — a signal worth understanding before selling premium.
Skew is not a direction predictor. Steep skew can persist for months in calm markets, and flat skew can occur right before a crash. Combine with VRP and IV Rank for context.
See AAPL's 60-day skew trend, peer comparison, and full smile shape.
Skew shifts often reveal changing downside demand and hedging pressure. AAPL's 60-day trend shows when options-market positioning is shifting.
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Skew shows how much more the options market is paying for downside protection (puts) vs upside (calls). When 25Δ puts cost meaningfully more than 25Δ calls, hedging demand is elevated.
Steep put skew + elevated tail risk means consider defined-risk spreads instead of naked puts. Flat or normal skew = standard premium-selling strategies viable.
Skew Ratio = 25Δ Put IV ÷ 25Δ Call IV. Buckets: Flat (<1.05), Normal (1.05–1.15), Elevated (1.15–1.30), Steep (>1.30).ORATS 30-day delta-25 put IV and delta-25 call IV (and ex-earnings variants when within 14 days of an earnings event)
ORATS institutional options data, 60-day rolling history from orats_summaries; updated daily after market close (~6:00 PM ET)
Wave 1 uses static thresholds (1.05/1.15/1.30) — Wave 2 will calibrate per-ticker percentiles. Skew measures positioning and the cost of downside protection, NOT directional prediction. Steep skew can persist for months in calm markets, and flat skew can occur right before a crash.
It compares the implied volatility of 25-delta puts against 25-delta calls. A ratio above 1.00 means the market is pricing puts richer than calls — typical for equity indices and large-caps where downside protection carries a structural premium. Sustained values above 1.30 suggest defensive positioning.
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
No. Skew measures how much the options market is paying for downside protection vs upside. It can stay steep for months in calm markets and flatten right before a crash. Use it as positioning context, not a predictor of price direction.
Earnings inflate IV asymmetrically and can distort the skew ratio. When VolRadar detects earnings within the next 14 days, the card surfaces an inflation flag and shows a clean (ex-earnings) ratio derived from ORATS exErn fields when available.
The chart plots AAPL's daily skew ratio (25Δ put IV ÷ 25Δ call IV) over the past ~60 trading days using ORATS history. Reference dotted lines mark the static thresholds (1.05 / 1.15 / 1.30). Wave 2 will replace static buckets with per-ticker percentile calibration.
Flat or normal skew = standard premium-selling strategies viable. Elevated put skew = puts collect richer premium, but pair with Tail Risk and IV Rank before sizing up. Steep skew = consider defined-risk vertical spreads instead of naked positions, since the market is pricing meaningful downside concern.