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Do you think this is accurate? Thank you.

XAU/USD

To calculate the ratio of the differences, follow these steps:

- Calculate the difference between the highest strike and middle strike.
- Calculate the difference between the middle strike and lowest strike.
- Divide the result from step 1 by the result from step 2.

For the first set of values:

- Difference (highest-middle) = 2074.4 - 2032.8 = 41.6
- Difference (middle-lowest) = 2032.8 - 2004.2 = 28.6
- Ratio = 41.6 / 28.6 ≈ 1.4545 (rounded to 4 decimal places)

For the second set of values:

- Difference (highest-middle) = 2061 - 2029.6 = 31.4
- Difference (middle-lowest) = 2029.6 - 1994.3 = 35.3
- Ratio = 31.4 / 35.3 ≈ 0.8895 (rounded to 4 decimal places)

The first ratio is approximately 1.4545, and the second ratio is approximately 0.8895. Since the ratio decreases from the first set to the second set, you would sell according to the given rule.

Got it. Thank you @costos

- Calculate the difference between the highest strike and middle strike.
- Calculate the difference between the middle strike and lowest strike.
- Divide the result from step 1 by the result from step 2.

For the first set of values:

- Difference (highest-middle) = 2074.4 - 2032.8 = 41.6
- Difference (middle-lowest) = 2032.8 - 2004.2 = 28.6
- Ratio = 41.6 / 28.6 ≈ 1.4545 (rounded to 4 decimal places)

For the second set of values:

- Difference (highest-middle) = 2061 - 2029.6 = 31.4
- Difference (middle-lowest) = 2029.6 - 1994.3 = 35.3
- Ratio = 31.4 / 35.3 ≈ 0.8895 (rounded to 4 decimal places)

For the third set of values:

- Difference (highest-middle) = 2057.1 - 2026 = 31.1
- Difference (middle-lowest) = 2026 - 1999 = 27
- Ratio = 31.1 / 27 ≈ 1.1519 (rounded to 4 decimal places)

For the fourth set of values:

- Difference (highest-middle) = 2057.1 - 2026.1 = 31
- Difference (middle-lowest) = 2026.1 - 1991.8 = 34.3
- Ratio = 31 / 34.3 ≈ 0.9035 (rounded to 4 decimal places)

For the fifth set of values:

- Difference (highest-middle) = 2066.8 - 2029.5 = 37.3
- Difference (middle-lowest) = 2029.5 - 2003.9 = 25.6
- Ratio = 37.3 / 25.6 ≈ 1.4570 (rounded to 4 decimal places)

The ratios for each set of values are approximately 1.4545, 0.8895, 1.1519, 0.9035, and 1.4570.

Now, let's average the ratio over the last set of data:

(1.4545 + 0.8895 + 1.1519 + 0.9035 + 1.4570) / 5 ≈ 1.1713 (rounded to 4 decimal places)

The average ratio is approximately 1.1713. Based on the given rule, if the ratio increases, you buy, and if the ratio decreases, you sell. Since the average ratio (1.1713) is lower than the ratio for the last set of data (1.4570), **the overall trend is increasing, so you would buy.**

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DislikedGot it. Thank you @costos the overall trend is increasing, so you would buy.Ignored

1

- | Joined Dec 2008 | Status: Member | 260 Posts

What it shows is a reflection of the of the business that the Banks' clients are doing. Skew will be greater on calls if there are more clients hedging to the upside and conversely greater on puts if there are more clients hedging to the downside. The % chance of a particular strike being in the money is the delta.

1

DislikedWhat it shows is a reflection of the of the business that the Banks' clients are doing. Skew will be greater on calls if there are more clients hedging to the upside and conversely greater on puts if there are more clients hedging to the downside. The % chance of a particular strike being in the money is the delta.Ignored