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Negative Gold Skew

Gold has usually traded with a positive option implied volatility skew, meaning that options with strikes higher than the current price trade with implied volatility which is higher than implied volatility at lower strikes.  This is generally because gold has a tendency to spike up rather than down, which is the opposite of most equities.  In recent months, the skew has flattened and reversed.

Options with lower strikes are now trading at higher implied volatilities than options with upper strikes

If your view is still negative on the dollar, this means that a purchased call has gotten cheaper relative to a put.  A good strategy in this situation would be to sell out of the money puts and buy calls on gold to take advantage of the negative skew.  If this strategy confuses you, make sure to learn how to trade options efficiently.

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