ratiois a popular tool specifically designed to help
individual investors gauge the overallsentiment of the market. The ratio is calculated by dividing the number
of tradedput optionsby
the number of tradedcall
options. As this ratio increases, it can be interpreted
to mean that investors are putting their money into put options rather than
call options. An increase in traded put options signals that investors are
either starting to speculate that the market will move lower, or starting tohedgetheir portfolios in case of a sell-off...