http://www.tradersnarrative.com/caution-option-traders-wildly-bullish-2345.html Freshly squeezed market commentary & analysis Sat, 20 Mar 2010 09:24:27 +0000 http://wordpress.org/?v=2.0.2 http://www.tradersnarrative.com/caution-option-traders-wildly-bullish-2345.html#comment-37532 Tue, 10 Mar 2009 19:10:20 +0000 http://www.tradersnarrative.com/caution-option-traders-wildly-bullish-2345.html#comment-37532 It could also mean a couple of other things: that the call buyers were (a) looking for a bounce, like today and/or (b) buying calls on inverse ETFs. It could also mean a couple of other things: that the call buyers were (a) looking for a bounce, like today and/or (b) buying calls on inverse ETFs.

]]> http://www.tradersnarrative.com/caution-option-traders-wildly-bullish-2345.html#comment-37529 Tue, 10 Mar 2009 14:33:52 +0000 http://www.tradersnarrative.com/caution-option-traders-wildly-bullish-2345.html#comment-37529 It is not so unusual to see ISE options traders stubbornly betting against the direction of the market. In 2006 the ISE Index (measured by the 20day moving average) was constantly moving lower from July to September, while the market was moving higher. The ISE Index did not turn until the market finally jumped above its previous bull market highs made in may 06. I think the rather high ISE Index in the last weeks is an expression of the hope that the market is in the process of forming a bottom. It is not so unusual to see ISE options traders stubbornly betting against the direction of the market. In 2006 the ISE Index (measured by the 20day moving average) was constantly moving lower from July to September, while the market was moving higher. The ISE Index did not turn until the market finally jumped above its previous bull market highs made in may 06. I think the rather high ISE Index in the last weeks is an expression of the hope that the market is in the process of forming a bottom.

]]> http://www.tradersnarrative.com/caution-option-traders-wildly-bullish-2345.html#comment-37528 Tue, 10 Mar 2009 14:16:24 +0000 http://www.tradersnarrative.com/caution-option-traders-wildly-bullish-2345.html#comment-37528 JJ, no, because the ratio is calculated by long calls to open a position divided by long puts to open a position. It is more specific than the CBOE put/call ratio. JJ, no, because the ratio is calculated by long calls to open a position divided by long puts to open a position. It is more specific than the CBOE put/call ratio.

]]> http://www.tradersnarrative.com/caution-option-traders-wildly-bullish-2345.html#comment-37527 Tue, 10 Mar 2009 12:57:54 +0000 http://www.tradersnarrative.com/caution-option-traders-wildly-bullish-2345.html#comment-37527 I am new to this but could this be caused my call writing? or just call buyers ? I am new to this but could this be caused my call writing? or just call buyers ?

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