Are Investors Turning to QQQs for Protection?

Summary

ORATS has found that skew measurements between SPY and QQQ are almost equal, indicating that options investors are buying more puts in QQQs than in SPY for protection.

The perennial favorite in put protection, SPY is being challenged by tail risk upstart QQQ. The ORATS measurement of skew has been falling in SPY recently and rising in QQQ to where the two measurements are almost equal.

Skew measures the relationship between put and call implied volatility explained HERE. As options investors buy puts the implied volatility and the skew increases. This appears to be happening in the QQQs of late more than in SPY.

Download an explanation about skew and ORATS data HERE

Watch a video about skew here: API analyze skew in ETFs: http://screencast-o-matic.com/watch/cD1UoCittf

Watch these other videos: Option Markets and Analytics https://screencast-o-matic.com/watch/cblUoE2Wgu

API QuickStart: http://screencast-o-matic.com/watch/cDnVFDhMKq

API historical data: http://screencast-o-matic.com/watch/cDiOraiCP8

Download our Excel API access worksheet here https://api.orats.com/downloads/excel

Looking Back on a Chilly Year for IPOs, and Why 2024 Could Warm the Waters

We look at the weak 2023 IPO market and revisit four mid-year IPOs with important lock-up expiration dates in late December.

Will Shrink Strike Again? DICK’S and Best Buy Highlight Week 2 of Retail Earnings

We profile two retailers that have struggled this year for signs of a turnaround

What Options Market Tells Us About Twitter

Amid a legal battle between Elon Musk and Twitter, traders can assess trends in options market for clues on where stock might go