A diary of the thought process behind my investment decisions
Why is elevated call activity not a positive?Not saying I disagree per se, but would like to get some clarification.
Heavy call activity tend to happen at tops while heavy put activity tends to happen at bottoms. I guess the explanation would be that if everybody is buying calls than everybody is already bullish. No more new buyers.
We are only about 10% below all time high in S&P. I am still holding stocks that I bought at 2009, 2010 and 2011 close to bottom (all dividend stocks). But I would be very careful adding new position until either good correction or we pass all time high by 5%.
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