re Friday's 5:1 call:put activity ratio
LT, you view that as a contrary indicator.
So, I say, 5 times as many May 70 calls were bought.
You say, 5 times as many May 70 calls were sold.
Since the premiums were different, would you consider a more useful metric to compare the number of 70calls traded vice the number of 65 puts traded, since they are both equally far out of the money?
cboe.pcquote.com
In that case, we get 1770 calls traded, last price 2 13/16, and
480 May 65 puts traded, last price 2 7/16.
I would interpret the data as indicating that more people wanted to buy DELL 70 calls than wanted 65 puts and were willing to pay ~3/8 more to get them. (Obviously they didn't all trade at those prices) Would your contrary indicator still conclude that these data augur a downward trend?
TIA, 3 |
