Taiwan Semi Stock Is Soaring Above AI Bubble Fears. Where Options Data Says It Is Headed Next.

Another intriguing factor to consider is volatility skew. Definitionally, the skew is a distortion of the volatility surface area. Under a condition of no sentiment or structural bias, this indicator would be perfectly flat across the strike price spectrum. However, as smart money traders buy “insurance” against either downside or upside risk, the skew becomes distorted, allowing retail traders to read the sentiment profile of sophisticated market participants.These derivatives typically feature far out-the ...