DAVID, BK WATCH!!! (SELL, SELL, SELL) Barron's based indicators show open interest ratio between equity calls and index puts have GONE OFF THE CHART!!!
Caveats: I could not find the Weekly Options Totals in Barron's in Tuesday's (June 1, 1999) issue. But this is what I get from IBD:
OI (Total of Index Puts): 910,000 (give or take 5,000)
OI: (Total of Equity Calls): 36,000,000 (give or take 100,000)
Note: I usually use total Call OI including index options as the equity options overwhelms the ratio anyway.
OI Call/OI Put Ratio: 40::1.
The very highest I have EVER seen this ratio was 23::1 before the Feb 1994 sell-off (I think I have my years straight).
MEGA-CAVEATS: IMHO, BWDIK, etc, etc, etc. This alert is based on my own work which has not been thoroughly researched and is more anectdotal than rigorous. However, it HAS worked before AND we are at an extreme!
Bill |
