fbpx Put-Call Ratios in 2020: A Historic Year (Preview) | Option Strategist

Put-Call Ratios in 2020: A Historic Year (Preview)

By Lawrence G. McMillan

We have continually been talking about how low the equity-only put-call ratios have been this year – first in January when they dropped to the lowest levels since levels since 2014, but then again in August when they dropped to the lowest levels in our database, which goes back to 2001.

The first graph above shows the distribution of CBOE Daily Equity-only Put-call Ratio readings for the twenty years, 2001–2020 – i.e., for all the data that we have in our database. The scale along bottom (X-axis) is the daily number for the CBOE’s equityonly put-call ratio. So it begins with “40.” That is all of the days on which the ratio was 40 or less (40 puts traded for every 100 calls). There haven’t been too many of those, as you can see by the scale on the Y-axis: less than 1% of all readings over the 20 years have been 40 or less...

Read the full article, published on 11/13/2020, by subscribing to The Option Strategist Newsletter now. Existing subscribers can access the article here

The Option Strategist Newsletter $29 trial

Share this

Option Strategist
Blog Search

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
Visit the Disclosure & Policies page for full website disclosures.

-->