After a PC of 3.73 for OEX and 2.41 for SPX yesterday we got another high PC day today: 2.73 for OEX and 2.11 for SPX. Someone is loading puts like crazy. Very strange.
Another High PC day for SPX and OEX
Started by
redfoliage2
, Feb 06 2007 09:58 PM
2 replies to this topic
#2
arbman
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Posted 07 February 2007 - 04:15 AM
Almost all of the OEX option volume is in the OEY, so in or near the money purchases, and they are customer, not firm. It will be interesting to see whether these guys are really the smart money...
#3
qqqqtrdr
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- Traders-Talk User
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Posted 07 February 2007 - 09:31 AM
Almost all of the OEX option volume is in the OEY, so in or near the money purchases, and they are customer, not firm. It will be interesting to see whether these guys are really the smart money...
Looking back my historic charts it seems that anytime it hit extremes over a 10-day average OEX Put/Call a top is at hand in 85% of the cases. In around 65% of cases the top happened within a couple days. Otherwise the market drifted higher for a couple weeks.
The times it works really well. 10-day CBOE Put/call would need to be less than .70 ( 10-day average ). Regardless, it seems like it would not be a good idea to be long....
Barry
