Options Sentiment
Options Trading
Definition
Measures of investor sentiment derived from options trading activity, including put/call ratios and volatility skew, providing insights into market expectations and potential contrarian signals.
Key Points
- Put/call ratios measure fear vs greed
- High put buying indicates pessimism
- Extreme readings often contrarian signals
Examples
High put/call ratio signals excessive fearLow ratios indicate complacencyQuick Info
Category
Options Trading
Related Topics
put call ratio
implied volatility
sentiment indicators
Related Terms
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