Greeks.live: options market data shows significant drop in market heat as participants' optimism for January wanes

On 25 December, Greeks.live analyst Adam posted on social media that the difference in options skew across maturities had widened. Since the bull market at the end of the year, skew across maturities has been close, fluctuating around 5%, with most of the difference between them not exceeding 1%, but with the recent correction, the difference has begun to widen, and short-term skew has fallen by a lot. The short-term skew has fallen more. These data suggest that the frenzy in the market is clearly declining and that options market participants are less optimistic about January.