Contrarian investor


Vaatab alati üldise meediaga vastassuunas.

Järgnevalt üks tore put/call ratio graafik (sinine joon). Mida kõrgem seda parem - seda rohkem karusid.



Stated simply, the equity put/call ratio is the percentage of puts (options traded expecting a drop in stocks) that are trading relative to calls (options traded expecting a rise in stocks). When the percentage of puts to calls increases, it indicates rising fear in the market, which we interpret as a buy signal at extremes

Some traders believe that the Put-Call ratio is a measure of market sentiment. It is also believed to be a contrary indicator.

The theory is that, if too many calls are being purchased, market sentiment is too bullish. This leads some to predict that a market decline is imminent. On the other side, if too many puts are being purchased, then market is too bearish. Consequently, some will predict that a market rise is imminent.

What is “too many calls” or “too many puts”? This is the subject of many debates. Some traders believe that if the 10-day volume of puts is 120% (1.20) of the 10-day volume of calls, then this is “too many puts.” This might lead them to predict a rise in the market. Some traders believe that when the 10-day volume of puts is only 40% (0.40) of the 10-day volume of calls, then this is “too many calls.” This might lead them to predict a fall in the market.

Please be aware that the Put-Call ratio is not a guaranteed predictor of future market action. There are many debates about what is too high or too low a ratio. Furthermore, many market pundits question whether it has any value at all. At best, the Put-Call Ratio is only one of many market indicators that can be used in a subjective way to make market predictions.
(CBOE)

Put/Call Ratio reedel CBOE andmetel 0,79. Päris ilus.

Graafik

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