Another technical indicator is the put/call ratio. The put/call ratio is the number of put options traded
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Another technical indicator is the put/call ratio. The put/call ratio is the number of put options traded divided by the number of call options traded. The put/call ratio can be constructed on the market or an individual stock. Below you will find the number of puts and calls traded over a four-week period for all stocks:
How would you interpret the put/call ratio? Calculate the put/call ratio for each week. From this analysis, does it appear the market is expected to be upward trending or downwardtrending?
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Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
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