Put Buying

We are finally seeing some put buying. This is an incremental positive for the bulls but I would note that after many months of call buying it is not yet a buy signal. It could lead to some stabilization.

8 comments:

Anonymous said...

2% correction so far. Will be going a little long shortly.

Anonymous said...

markets don't correct in a straight line down.

CP said...

I don't think put buying matters once a top is in. Can you think of evidence to the contrary?

Tsachy Mishal said...

You are correct. At least not a single day of it. A string of several days with put buying does matter. But the fact that investors stopped buying calls and turned around and started buying puts combined with a 35 point drop in the S&P 500 does mean that we might finally see some near term stabilization.

Tsachy Mishal said...

And it did for that matter.

Anonymous said...

Hi Tsachy, can you tell me what you resources you use to see call and put buying? Thanks

Tsachy Mishal said...

http://www.ise.com/WebForm/viewPage.aspx?categoryId=126

and

http://www.cboe.com/data/IntraDayVol.aspx

Anonymous said...

Thanks!