2.5.7 Skew Adjusted Delta Exposure

Skew Adjusted Delta Exposure (DEX-SA) utilizes the IV smile to assess relative demand for contracts, and so provides a dynamic estimate of what percentage of contracts might be bought for both puts and calls. A negative value means the market participants are likely net short on the stock, while a positive value means participants are likely long. This value tends to be mean reverting and can provide information about when momentum might swing between bulls and bears.