In Today’s Masters in Trading: Live Yesterday, we talked about why we don’t pick direction when we trade. It’s all about movement – and two key strategies we use to benefit any time a stock makes a huge move. Today, we’re going a level deeper. Because even when traders do try to pick direction, most of them are guessing. They’re looking at charts. Headlines. Maybe a moving average or two. But they’re missing the one place where the market is telling you exactly what it’s thinking: The options chain itself. Welcome to Day 2 of the series. Today we’re talking about one of the most overlooked edges in all of options trading – Skew. Most people assume a stock has a 50/50 chance of going up or down, but that’s nowhere near how the market prices risk. Skew measures whether calls or puts are more expensive relative to each other. That difference is the key to many of our strategies here in Masters in Trading. Let me give you a simple example. You’ve got a $30 stock. The upside calls are trading for $1. And the downside puts? $0.20. That’s not random. It’s a directional lean. It’s the market telling you — in real dollars — that traders are pricing in a 4-to-1 probability of the stock going higher. The options chain shows you what traders are actually betting on. Once you start looking at options this way, everything changes. Of course, skew isn’t the same everywhere. In biotech, for example, you’ll often see massive upside skew because of binary events — approvals that can take a stock from $20 to $200 overnight. But on the flip side, broad markets like the QQQ tend to have more downside skew. In every sector and any market you can think of, the pricing always tells the story. And once you know how to read it, you’ve got an edge most traders never develop. In today’s episode of Masters in Trading, I’ll walk you through exactly how we analyze skew — step by step — using real examples like AUP, SAVA, and QQQ. I’ll break down how we use skew to get an accurate sense of investor sentiment – and the key trade setups we can discover using skew data. P.S. Are you interested in taking the next step toward options mastery? The Masters in Trading Options Challenge is right here to help you in your journey. The Challenge is where we take everything you’ve learned in my daily LIVEs — fixed risk, thesis-driven exits, laddered entries, defined-duration trades, and emotional discipline — and put it into practice in a structured, step-by-step environment. Just click here to check out what the Masters in Trading Options Challenge has in store for you. 
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