Question: 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.

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?

Week Puts 1,631,846 1,772,815 1,976,277 2,182,270 Calls 1,874,986 1,991,650 2,187,450 2,392,751 4

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Week PutCall Ratio 1 08703 2 08901 3 09035 4 09120 The putcall ratio is a measure of investor sen... View full answer

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