The Put/Call Ratio is a measure of bearish or bullish sentiment in the market. A reading above 1.0 indicates that options traders are purchasing more Puts than Calls, in anticipation of the market falling in the near future. A reading below 1.0 indicates that options traders are purchasing more Calls than Puts, in anticipation of the market rising in the near future.
The Put/Call Ratio is a Contrary Indicator, meaning that a successful trader is bullish when the indicator is high, and bearish when the indicator is low. A trader tries to buy low (in weakness) and sell high (into strength).
= recessions
The Put/Call Ratio is a Contrary Indicator, meaning that a successful trader is bullish when the indicator is high, and bearish when the indicator is low. A trader tries to buy low (in weakness) and sell high (into strength).
= recessions