Put/Call Ratio

Discussion in 'Options' started by sammybea, Oct 23, 2008.

  1. As far as I understand, the current put/call ratio is roughly 1.24. Is this number correct? Is this considered an extreme number?

    Thanks in advance.
  2. dmo


    1.24 is correct. That's on the high side, but not extreme.
  3. ammo


    can someone give me the gist of this,over 1 bullish,under bearish?
  4. dmo


    Not quite that simple. Google "put call ratio" and you'll find a few good articles that explain it.

    Personally I've never found it that useful. It gives you volume, but you have no way of knowing if that volume is being driven by buyers or sellers of premium. The assumption is that high volume is being driven by buyers, but that's ridiculous.
  5. True and it doesn't take account of neither OTC deals nor exotic products open interest.

    The kind of trader is important. Big open interest for puts held by hegded professionals won't have the same impact on the market than a pure directional asset manager who only wants to be hedge against crashs.
  6. I think ISE produces a p/c ratio based on customer flow only. no BS otc or x products
  7. That's the subject of my previously linked article.
  8. Oh, my apologies. I dont click links here anymore. Caught the mexican keeky bug virus one day....

    Great minds though!
  9. #10     Oct 28, 2008