Skewed Put/Call Ratios

At times during the past year we have been seeing very extreme readings on the put/call ratios. In April the ISE equity only reached levels never seen before. I believe the data may be distorted due to low dollar stocks like Citigroup and Bank of America. A call on Citigroup likely costs pennies and does not deserve the same consideration as a call on a stock such as JPMorgan but it is afforded the same consideration.

According to ISE data about 110,000 call options were bought today on Bank of America and Citigroup combined, while only 5000 Puts were bought. That tremendously skews the data even though there was likely not as large a cash outlay on those options as there would be with higher dollar value stocks.  I am looking for a way to get a better reading. Do any readers know where to find one?

1 comment:

Anonymous said...

Ol Dawg short/long market ratio.

getting long 3X leverage bear etf's count as shorts.

Right know OD is short this mother fuc.ker.