Summary: Today, we explore the idea of [volatility skew](https://www.tastytrade.com/tt/shows/from-theory-to-practice/episodes/volatility-skew-04-04-2016). In the equity markets, volatility tends to be “skewed” to the downside, as [the market place expects prices to potentially fall faster than they might rise](https://www.tastytrade.com/tt/shows/from-theory-to-practice/episodes/price-impact-asymmetry-12-09-2015). This phenomenon yields two important results. First, out-of-the-money puts will sell for more than equidistant out-of-the-money calls. Second, out-of-the-money call spreads will sell for more than equidistant out-of-the-money put spreads. Mike, from Everyday Trader, joins the set today to help us understand exactly how this plays out.
