macrocephalopod

I get this question a lot in DMs so putting it here so I can refer to it later. "Why do put options and call options at the same strike have different implied volatilities (attaches screenshot of broker GUI)?"

Is it possible they’re sometimes not equal because they are American, and there’s some kind of dividend and/or borrow thing going on? I try not to think about American options so I may be completely off, but this at least sounds plausible.

i think u got lazy and didnt read the thread ;)

Ah I read it but what I understood was “the IVs are wrong because your broker has crappy input data and doesn’t care” but I think what you meant was “the IVs are wrong because the options are American and there are dividend/borrow effects, and your broker uses BS naively”

its not skew

Refer to the formula in the link I attached.