S&P 500 Put-Call Skew Drops to 20-Year Low

Investor demand for downside protection on the S&P 500 has significantly decreased, with the average three-month single-stock put-call skew now at its fourth-lowest level in 20 years, according to BeInCrypto. The hedging gauge has fallen 75% since March, marking its sharpest decline since April-May 2025. Data from The Kobeissi Letter shows the skew at 0.04, indicating minimal demand for crash insurance. This shift coincides with a record rally in US equities, as the S&P 500 reached an all-time high in May, appreciating over 16% since March 31.