call premium and call volume are separate issues
if tons of people were selling covered calls, at small premium,
then that is not in the least bullish
they would essentially be giving away their risk
but if many folks are buying calls, then premium rises, thus bearish if extreme
the volume of sellers and buyers will determine the premium values
what is important is rather the ratio of put premium to call premium
i.e. VIX
(at least for the OEX = S&P100)
whether calls are sold as covered, or bought long, not the issue
what is important is the premium, a function of supply/demand
I respect your view, but think you are reaching
VIX is low, plain & simple == bearish
put premium is low relative to call premium, independent of volume
/ jim |
