I watch the equity put to call ratio with some care. As you may remember, I was skeptical of the pump last week because the correction didn’t seem done on account of the Equity PCR not hitting the spikey high we often see at capitulation lows. That post can be found here. And sure enough, here we are, that pump got faded.
However: we got the spikey high today. The ratio almost hit 1, which is fuel for the upside now. The last time we got to these lows on 9/20, we only got an .85 on the ratio. So now—finally—people are really buying puts here. And that means it’s probably actually time to buy calls instead.
Note: When my work is first published on this website, it is made available to patrons who support my work through my Patreon account. Over time (usually after a period of a few months), I make the work public. To gain access to my work when it is produced, please consider becoming a patron. More information may be found on my About page and on my Patreon page.