That put call thing continues to fascinate me, too, bobcor. Part of the reason is because I keep watching the open interest in QQQ puts build and build and build. Last week, max pain was a little over 35. By today's open, QQQ puts outnumbered calls at every January strike price from 38 on down. Yes, even 38.
In February, max pain is around 37.5 right now. I know it's too early to use that as a guide, but it bears watching... cuz it's been a damn fine guide to why we haven't had major tankage since March: the big bets in QQQ puts have never gone in the money. Now, like all trends, there's a 100% guarantee that it'll end. But when?
Individual issues show more call buying, it's true, but Feb isn't as lopsided as January was. And January proved it didn't care much about calls. The high call volume the past couple days has PROBABLY been a lot of Jan calls being sold. That counts in the volume figures, after all.
When we start seeing the buy interest in QQQ puts going down, that'll merit some jumping up and down, imo. Until then, shorting is gonna be scalp territory (or guessing earnings correctly).
the freep, wishing everyone a nice long weekend. Hmmm, you Canadians probably dont get Monday off from work, do ya? well, ya should <g> |
