Buying Puts vs Buying Calls: Why Puts Cost More
Buying puts vs buying calls is not a mirror trade. Skew, carry and realised volatility make the put the pricier side. Four measured reasons, with data.
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Risk Reversal Options: Sell a Put, Buy a Call
A risk reversal sells an out-of-the-money put to fund an out-of-the-money call. One AAPL chain priced at 25 delta, its payoff and the skew spread desks quote.