Summary: Our default setting in the market, at least the equity market, is to [see volatility skewed](https://www.tastytrade.com/tt/shows/from-theory-to-practice/episodes/showcasing-the-skew-07-05-2017) to the downside. In other words, we expect out-of-the-money puts to have higher volatilities (and thus, sell for higher prices) than equidistant out-of-the-money calls. However, in today’s segment, we are reminded that this isn’t necessarily always the case. James, from the research desk, joins the set and brings with him some really nice visuals to help us recognize when we might be witnessing a market that is “upside-down”.
