Ye Olde Put Call

by Adam Warner, Friday, Mar. 12 comments

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.

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