[R-SIG-Finance] How to interpret this formula?

[BBands]

I originally saw it this way,
    Actual/strike -1
which is the % in the money.

I modified that to:
if actual >= strike then
    actual/strike -1
else
    strike/actual - 1
endif

>From a trading perspective that makes sense as it gives you the
correct reversible round-trip distance, which is quite useful, but
skewness it ain't.

Best,

     John

On Sat, Oct 12, 2013 at 12:53 PM, Arun Kumar Saha
<arun25558038 at gmail.com> wrote:
> Hi,
>
> I have come across a formula to calculate the Option implied skewness which
> is calculated as (Strike/underlying's price - 1)
>
> Has anyone come across a similar type of formula?
>
> Can somebody please explain how can I derive that? Any online
> reference/paper is highly appreciated.