funny its today with the fed announcement, but today's P/C readings are by far showing the most bullishness in many months. The ISE 10d is @ 132 calls for every 100 puts, todays number was as high as 240 earlier, 208 now. The CBOE 10d equity P/C is .90, earlier, todays number was .55, now .60ish...someone definately betting on an up after the announcement. I'm betting the other way for a 1-2% move.
P/C
Started by
tommyt
, May 09 2007 12:44 PM
1 reply to this topic
#2
jjc
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- Traders-Talk User
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Posted 09 May 2007 - 12:59 PM
Take a look at the active options so far today. Number 2 on the board is the June 20 Calls in the VIX; over 106,000 have changed hands.
IF you are a believer in put/call ratios as an indicator, you are going on the assumption that most options are bought, and knowing whether the *public* wants to buy more puts or calls gives you a window on sentiment. And that sentiment is to be faded.
But a purchase of VIX calls is effectively a BEARISH bet on the S&P. And thus should be counted as puts in any rational put/call ratio analysis.
http://www.adamsoptions.blogspot.com/
IF you are a believer in put/call ratios as an indicator, you are going on the assumption that most options are bought, and knowing whether the *public* wants to buy more puts or calls gives you a window on sentiment. And that sentiment is to be faded.
But a purchase of VIX calls is effectively a BEARISH bet on the S&P. And thus should be counted as puts in any rational put/call ratio analysis.
http://www.adamsoptions.blogspot.com/
