Investor demand for downside protection is plummeting: The average 3-month put-to-call skew of S&P 500 single stocks is down to 0.04, the 4th-lowest reading over the last 20 years. This measures how much more investors are paying for downside protection via put options than for upside exposure through call options. The lower the reading, the less investors are paying to protect themselves against a market decline. The average 3-month put-to-call skew has fallen -75% since March, posting the sharpest drop since April-May 2025. This metric is even lower than during the 2021 meme stock frenzy. Investors are no longer thinking about downside risk.(The Kobeissi Letter)