CBOE Equity Put-Call Exceeds 1.0 Again

Posted by barkand on August 9, 2011 under Market sentiment | Be the First to Comment

Finally, some bearishness has hit the options market.

Yesterday, the put-call ratio on equities was 1.08 after going above .90 a couple times at the end of last week. This last happened back in June, and we noted here and here the significance of a number above 1.0.

So now, once again,  the market seems primed for a rebound. But in a way we almost prefer to see another day (or two) with a put-call ratio above 1.o as that tends to produce stronger rallies. As it stands now, a 5% rally would take us all the way back to levels not seen since, uh, last Friday.