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.
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.
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.
This guy wrote a really good article on p/c's. Don't know him but he's one smart mf....... http://www.tradingmarkets.com/.site/options/how_to/articles/-77152.cfm
Oh, my apologies. I dont click links here anymore. Caught the mexican keeky bug virus one day.... Great minds though!