yieldharbour

We are excited to announce that Yield Harbour has officially submitted a governance proposal to initiate the deployment process to Kujira mainnet. This proposal seeks to deploy the Price History contract, which will record on-chain asset prices every 30 minutes.

So by analyzing the volatility skew, traders can gauge the market's expectations about potential extreme moves. They can then position their options trades accordingly to try to capitalize on or protect against those expected volatility scenarios playing out.

This skew or asymmetry in volatilities exists because the options market is pricing in a higher chance of the stock making a really big move in either direction by expiration, compared to a smaller/moderate move.

When you look at options prices for a given asset and expiration date, you'll notice that the implied volatilities (which drive the options premiums) are not the same across all strike prices. This unevenness in implied volatilities across strikes is called the volatility skew