The average three-month normalization Put/Call Skew for S&P 500 stocks has fallen to 0.04. The historical mean is 0.16 and the historical high is 0.34. The current reading is the fourth lowest in the last two decades, and has plummeted by 75% since March.
The current extreme lows mean that the pricing behavior of the option market is a state of collective forgetting. Human greed, conformity, and extrapolation of the recent strong trend are driving traders to dismantle their safety nets
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