A diary of the thought process behind my investment decisions
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.
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.
8 comments:
2% correction so far. Will be going a little long shortly.
markets don't correct in a straight line down.
I don't think put buying matters once a top is in. Can you think of evidence to the contrary?
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.
And it did for that matter.
Hi Tsachy, can you tell me what you resources you use to see call and put buying? Thanks
http://www.ise.com/WebForm/viewPage.aspx?categoryId=126
and
http://www.cboe.com/data/IntraDayVol.aspx
Thanks!
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