​Investors Eye Monetizing Europe, U.S. Skew Differential

Following the approval of bailout measures agreed between Greece and its creditors, skew flattened in Europe as investors once again began chasing upside in European stocks. Given the steep skew in the S&P 500, investors are exploring ways in which to monetize the skew differential between the equity indices in the U.S. and Europe. Rob McGlinchey spoke with Peng Cheng, an equity derivatives strategist at JPMorgan in London, on the drivers of flat skew in Europe and how investors can take advantage of the Europe versus U.S. skew differential.