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To: 10K a day who wrote (66149)	2/7/2000 9:01:00 AM
From: Jill	Respond to of 152472

Impristine...as always, thanx for your gorgeous charts.

To: 10K a day who wrote (66149)	2/7/2000 9:15:00 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 152472

Put-call ratio--what does this tell us? Presumably the author intends it as a proxy for investor psychology, and one should take the opposite stance. Thus overweight calls is bearish; overweight puts is bullish. Problem is, "puts" and "calls" mean different things to different people. Specifically: are you short or long your position? People who sell naked calls will appear under open interest of calls, even though they are effectively short; vice-versa for naked puts. Without knowing the percentages of longs vs. shorts for both puts and calls, the data are not pristine <g>. If one could assume a constant ratio of buyers to sellers for each, then you could set up a constant K to filter them out. But such a constant ratio is likely to be elusive, in large part because the "price" of options is variable according to implied volatility vs. historical volatility. High IV likely to find more sellers; low, more buyers. Remember Keanes: Better to be inexactly correct than exactly incorrect. Reliance on put-call alone is exactly incorrect. Not pristine at all.