Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home/traders/public_html/wp-includes/functions-formatting.php on line 76
Yesterday we looked at the CBOE put call ratio since it had gone off the charts. Today it was the retail option traders turn to go crazy:
The ISE sentiment index is a slightly different way of looking at option sentiment since it is primarily focused on smaller option traders and it looks at option activity to open a trade. So by looking at the ratio of the ISE equity only call put ratio we get a much better idea of what retail option traders are doing.
Today they were the most bullish they’ve ever been. According to the intra-day activity, they started this morning with a call buying frenzy that took the ratio to 722 calls for every 100 puts. As the day wore on they calmed down a bit but were still buying more than 400 calls for every put. Then finally when the dust was settled, the daily call put ratio for the day stood at 348 - the highest daily close ever since we have data for this metric. That pushed the 10 day moving average to its highest ever as well: 249.
So option traders are even more bullish than they were in the summer of 2007 as the S&P 500 crested. The only caveat I can muster is that we have a limited amount of data since this data series was started in January 2006.
Enjoyed this? Don't miss the next one, grab the feed or