What is Short Skew? When your position is short options to the downside (the higher implied volatility part of the skew curve). This will leave you negatively exposed to crash risk as a move down will make your short option Greeks get bigger and will very likely lose money as the realized and implied volatility both increase. You are also long the upside options which will make your Greeks longer on a rally in the market, which will lose money if implied volatility falls. Interested in learning more?