3 replies to this topic

[youmast]

I never look on put/call ratio along. It tellsw nothing because high volume in calls could be bullish (like bullish institutional call spreads), while high numbers in puts could be bearish (for example, bunch of in-the-money puts). You have to watch the quality of the options float, and you have to clear understand what's going on in Chicago.

What is that? Is it a hedge? What kind of a hedge?

Or perhaps it is more neutral stuff, no? How much time left in that? What is the trading range?

Or maybe it is directional speculative play, huh? Which way? What target?

How big is that position? How it was married? At what time? How this position is corresponded with options taken before? What....? How....? Why....? etc etc etc........

Ohh... a lot of question to ask! It's not that simple as just a puke/owl ratio. I would be happy to get that simple picture in one simple number ("buy above 1.0, sell below 1.0"), but I can't... Many people made a wrong judgement on that.

Here is a sample of bullish positions taken in calls on Friday. Yes folks, CALLS could be bullish too....

[Bob-C]

I never look on put/call ratio along. It tellsw nothing because high volume in calls could be bullish (like bullish institutional call spreads), while high numbers in puts could be bearish (for example, bunch of in-the-money puts). You have to watch the quality of the options float, and you have to clear understand what's going on in Chicago.

What is that? Is it a hedge? What kind of a hedge?

Or perhaps it is more neutral stuff, no? How much time left in that? What is the trading range?

Or maybe it is directional speculative play, huh? Which way? What target?

How big is that position? How it was married? At what time? How this position is corresponded with options taken before? What....? How....? Why....? etc etc etc........

Ohh... a lot of question to ask! It's not that simple as just a puke/owl ratio. I would be happy to get that simple picture in one simple number ("buy above 1.0, sell below 1.0"), but I can't... Many people made a wrong judgement on that.

Here is a sample of bullish positions taken in calls on Friday. Yes folks, CALLS could be bullish too....

Hi youmast, thanks a lot for the time, effort, and insights that you put into your very informative reply.

Good luck on your trades.

Bob-C

[da_cheif]

the very high pc ratios we are soooooo bored with......have been with us for the entire bulll market......wouldnt want it any other way........

[OEXCHAOS]

Here is a sample of bullish positions taken in calls on Friday. Yes folks, CALLS could be bullish too....

If I had to guess, I'd guess that you're right. Provided this is a smart money spread, the market will likely hold together, though perhaps with bit of volatility (?). Then, on the 20th, we'll see whether they convert that Aug Call to a debit or another credit spread. Or perhaps they just sell it. The former would be bullish, the latter quite Bearish, I'd say. Selling it won't help us at all.

Mark