It's flashing a huge all clear with a .9. But....it is OPEX week.
OEX P/C
Started by
Cirrus
, Apr 16 2007 10:53 AM
2 replies to this topic
#2
gorydog
-
- Traders-Talk User
- 738 posts
Member
Posted 16 April 2007 - 10:59 AM
This indicator is what scared me off my longs last weekIt's flashing a huge all clear with a .9. But....it is OPEX week.
I guess you have to take into account the volume as well as the ratio when following this.
GD
#3
Cirrus
-
- TT Patron+
- 5,735 posts
Member
Posted 16 April 2007 - 11:11 AM
gorydog--sometimes paying closer attention to the 5, 10 and 20 DEMA of the OEX P/C is more accurate than a couple days of raw readings. Also, Jason at Sentimentrader.com tracks an OEX P/C vs Equity P/C relationship and OEX OI. Those all help assist in reading the indicator. I don't know how familiar you are with the indicator so you probably already know this.
I did get nervous myself and bought some ITM puts so I did give back a little of todays gains. Sometimes it's better to buy some puts than close longs because you profit by both a decline and a pick up in market volatility if you're long options/puts. I like In The Money puts on the Qs, SPY and IWM--weight according to relative strength. With ITM you don't give back as much if your wrong and there's typically a lot less spread. Of course, if you do get the decline ITM puts don't have a big payout.
Edited by Cirrus, 16 April 2007 - 11:12 AM.
