Total Put Call Ratio Revisited

By Lawrence G. McMillan

We normally follow the equity-only put-call ratio as one of our main contrarian indicators.  However, there is another put-call ratio that we follow from time to time, as it gives occasional signals.  That is the total put-call ratio, and it is on the verge of giving a buy signal.  We last wrote about this almost exactly a year ago (Volume 19, number 10&11 [double issue]).  In this article, we’ll review the indicator and update the results over the past year. 

The total put-call ratio consists of all options that trade on U.S. listed, SEC-monitored exchanges.  That is all stock and index options, but no futures options, nor any over-the-counter options.  Most of the time, this ratio is only of passing interest, but occasionally it rises above 1.00...

The full "Total Put-Call Ratio Revisited" article will be published in June 10th edition of The Option Strategist Newsletter (Volume 20, Issue 11). Subscribe to The Option Strategist Newsletter now to get the issue delivered to your inbox first thing tomorrow morning.