Edited by redfoliage2, 09 February 2007 - 07:48 AM.
OEX PC: Who bought and Who Sold
Started by
redfoliage2
, Feb 09 2007 07:46 AM
1 reply to this topic
#1
redfoliage2
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Posted 09 February 2007 - 07:46 AM
OEX daily PC finally dropped to 1.65 yesterday on a market down day. The strange thing is the daily PC ratio stayed over 3 or near 3 in the recent days when market was in rally. The question is Who were the put buyers and who were the put sellers? I suspect it's the traders (institutional and retails) who, expecting market to go up, sold puts to the market makers during the recent market rally. If this is the case, next week will be not be fun for bulls.
#2
redfoliage2
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Posted 09 February 2007 - 10:31 AM
This could be the key to the direction for next week, the OpEx week.OEX daily PC finally dropped to 1.65 yesterday on a market down day. The strange thing is the daily PC ratio stayed over 3 or near 3 in the recent days when market was in rally. The question is Who were the put buyers and who were the put sellers? I suspect it's the traders (institutional and retails) who, expecting market to go up, sold puts to the market makers during the recent market rally. If this is the case, next week will be not be fun for bulls.
