 Hey everyone welcome to today's tradehacker update starting with the tradehacker question of the day Why are puts more expensive than calls? Let's go to the platform and take a look when you look at a an option chain Let's just use a stock that's kind of close to its round number. How about city group close to 45? So let's open up the 46 day options and if you go equal distance away from the current price So the current price is at 45. So if we go equal distance away from the 45 strike, let's just go 10 points wide So if we go to the 55 on the call side, you can see those are trading for about 70 cents, right? Right between 65 and 75. So let's call it 70 cents on the call side But if you go 10 strikes wide away on the put side, you can see they're trading for about a buck oh two And so why is it that the puts the equal same distance away from the at-the-money strike? Why are the puts more expensive than the calls? Well, we call it puts queue and the reason is is because there's more perceived risk to the downside right people are buying puts as protection theoretically and so The the puts are going to be priced higher if the risk is Perceived to the downside in the stock and that's pretty true a lot of times for a lot of stocks and a lot of ETFs and equity related indices like SPY IWM QQQ They almost always have that put skew meaning the puts trade richer than the calls now You will find Individual stocks from time to time like Roku and Shopify for example have been stocks that have a little bit of a call Skew, let's just look at Shopify. I haven't looked at it from this perspective in a while, but let's see What it's looking like here. So Shopify is currently trading at $6.59 So 660 is kind of the at-the-money strike nearest to the money So if we go let's just go 20 points away just to take a look so 680 So those puts are trading at about 59 ish dollars and if we go 20 points down 10 20 These are trading at about 60. Okay, so you can see there's not as much in fact The the puts here are trading pretty close to the same value So there's really not any put skew in Shopify and that just means there's not as much perceived risk to the downside and if you see the calls Trading significantly richer that means that the risk of that stock is to the upside And you'll see call skew or the calls trade richer than the puts in commodities Like gold or oil or natural gas or some type of commodity where you'll see the perceived risk is to the upside so That is the deal on put skew So let's go to the market see what's going on take a look at the S&P 500 trading up a little over five The market just closed stocks were down almost all day And then we had a kind of a late afternoon rally and they came up a little bit to positive dial still slightly down Nasdaq up about a percent and the Russell pretty flat So kind of a back-and-forth day-to-day if you look at gold just trading slightly higher bonds pretty flat Natty gas up over 5% But a lot of back-and-forth action So what's happening? Well, we added a double calendar in spx. We rolled a couple positions and Let's take a look at what's going on with earnings Nothing much after the bell today. We've got AIG. We don't really trade that much Before the market opens tomorrow morning. Nothing really big that we trade but after the bell tomorrow, we've got Disney Okay, I know it's kind of blurry, but Walt Disney Company. We've got beyond the meat We've got Pinterest and then before the bell opens We've got Shopify on Wednesday CVS GM and after the bell on Wednesday. We've got PayPal Lyft and then a couple other notables throughout the week We've got Roku and Uber on Thursday and that's that's pretty much it So again, we're not doing a lot of premium selling during these earnings just because we're not getting that vol crash So it's not really we're not getting that bang for the buck if anything will do small Directional plays using vertical spreads and things like that. Just remember to keep your position size small stay safe Hope everybody's doing well. Talk to you tomorrow