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 downward trending?

Transcribed Image Text:

Week Puts Calls 1,631,846 1,874,986 1,991,650 1,772,815 1,976,277 2,187,450 2,182,270 4 2,392,751 1, 3.