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Strategies & Market Trends : CFZ E-Wiggle Workspace
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From: skinowski4/21/2025 6:11:03 PM
   of 41420
 
Robert Balan explains why 10 puts sold for every call (10:1 ratio) is not bullish - it’s bearish. This is because for every put sold, the dealers have to sell futures to hedge them. And - as the markets decline, they have to keep selling in order to remain hedged.

Think of Game Stop, a few years ago — a bunch of traders organized - and bought calls in large volumes. That caused dealer buying, with the rally getting supplemented by a short squeeze - and the stock went to the moon.

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