Option buyers are on the biggest call buying spree of the past 3 years

The put/call ratio is showing us that option traders are yet again on a call buying spree. So much that within just a few days, the 5 day moving average has reverted to its 3 year mean.

I hesitate to call it the biggest call buying spree in history, but I do not have the time to chart the long term graph.

This is quite an amazing chart, as it looks like the biggest call buying spree of the past 3 years, including during the greatest dead cat bounce in history. Yet, markets have not rebounded.

Here are the 5 year chart of the VIX and VXO (log scale). Do you see any panic?


Anonymous said...

You are the best contrarian indicator ever.

When you turn bullish, I will know it's time to sell out of the market for another financial crisis.

Thank you.

pej said...

Dude, please do as you please.
My track record is pretty good so far, but I'm curious about yours.

Commenting as Anonymous doesn't show a lot of courage...

Tiho said...

Binge buying in calls?

How did you come up with that?

pej said...

see the collapse of the 5 DMA of the PC ratio? It means call buying has been very much higher than put buying, during the past 5 days — at the time when this chart was taken.

Tiho said...
This comment has been removed by the author.
Tiho said...

Hahahahaha! Are you serious dude? You arent joking are you?