Timeline for Put call ratio has no meaning confusion
Current License: CC BY-SA 4.0
4 events
| when toggle format | what | by | license | comment | |
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| Sep 4, 2020 at 20:30 | comment | added | kurtosis | Yes, every seller is matched with a buyer. However, the whole point of Bondarenko (2014) is that put buyers are more motivated to initiate. Read the article -- and all of the articles it inspired. | |
| Sep 4, 2020 at 18:20 | comment | added | amdopt | Do you have any source(s) for "put option buyers are especially motivated to initiate positions, more so than put sellers" that conclusively show this without significant bias? I'd be interested to read if you do. | |
| Sep 4, 2020 at 18:19 | comment | added | Ludvig W | But, there is always a put seller whenever there is a put buyer right? So, I mean, the put call ratio should be moot, have 0 meaning? I feel like it's a bit like checking how many shares of a stock are shorted. Since every share is owned by someone, it doesn't matter, wherever there is a short person, there is a long person. Could you clarify a bit on how the put-call ratio actually can describe bearish vs bullish sentiment as that was the core of my question. Thanks! | |
| Sep 4, 2020 at 16:03 | history | answered | kurtosis | CC BY-SA 4.0 |