Option Sentiment

A nice chart from the blog of Horan Capital Advisors of the put-call ratio:

putcall5182012 Option Sentiment

Source: Horan Capital Advisors (click on image to enlarge)

Their observation is that ratios near one are often lows. There’s no way to know if the same thing will happen this time, but it fits in with the generally negative sentiment we see in our client behavior survey as well.

via Abnormal Returns

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