Extreme Call Buying

100 S&P 500 points higher and they are buying calls hand over fist. Both the ISE and CBOE are showing extreme call buying. One day of this does not make the market a sale, but we are definitely closer to extreme optimism than extreme pessimism.

3 comments:

MarketOwl said...

I don't think we are anyway close to extreme optimism.  We are up over 1% today, it is natural for the put call ratios to be very low.  It takes time for people who have been beared up for over 6 weeks to change direction.  Shorts will be tricky until we get more bulls on board.  This is an extremely strong market with a healthy wall of worry.

Tsachy Mishal said...

I would much rather buy into a market where there is extreme put buying.

Tsachy Mishal said...

ie 2 weeks ago