fbpx Why Are the Put-Call Ratios Split? | Option Strategist
Home » Blog » 2014 » 05 » Why Are the Put-Call Ratios Split?
By Lawrence G. McMillan

...Equity-only put-call ratios continue to remain split, with the standard on a sell, and the weighted on a buy.  We plan to delve into why this is happening – in an article in this week’s Option Strategist newsletter – but the short answer is that traders are buying out-of-the-money, low-priced puts for protection.  Hence there is a lot of put volume, pushing the standard ratio higher.  But the dollars are being spent on calls by speculators, in line with the general rising stock market, pushing the weighted ratio lower...

This commentary was excerpted from this morning's edition of The Daily Strategist newsletter.

 Sign up for The Daily Strategist Newsletter