Ye Olde Put Call
- Posted by Adam Warner
- on March 12th, 2010
Getting some low put/call readings as of late. Mean much? Well, we go over it a bit on Options Zone.
The CBOE Volatility Index (VIX) is certainly the most popular market gauge investor fear, but it’s not the only one. Let’s not forget the put/call ratio, which is simply a ratio of put options to call options that have traded over a given time period.
The put/call ratio is used to measure investor sentiment. The theory is that the more puts that trade, the more bearish the sentiment and, ergo, the more bullish from a contrarian standpoint.
Please click thru here for the balance of the posting.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Adam Warner is the author of Options Volatility Trading: Strategies for Profiting from Market Swings, released in October 2009 from McGraw Hill. (More)
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