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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: d j chen who wrote (3987)	7/27/2000 4:13:17 PM
From: LaVerne E. Olney	Read Replies (1) \| Respond to of 19219

d.j. I haven't found the put-call ratios to be very timely indicators, but I do chart a variation called the Hines Ratio, which is described as follows: The Hines Ratio is a TRIN related to options activity. For every buyer of an option, there is a seller (writer) of that option. It will be helpful then to note whether the volume activity is an indication of new buyers being met by new sellers or whether the volume actually represents traders who are liquidating positions. Combining open interest (the amount of outstanding contracts at the end of the trading session) with the call/put ratio of volume provides this additional information. This is called the call/put TRIN: Call volume / Call open interest Call / put TRIN (Hines Ratio) = -------------------------------- Put volume / Put open interest Note that the Hines Ratio chart shown here is inverted (Put-Call Ratio). Color changes on chart and Buy/Sell lines on graphs denote 1 standard deviation on each side of mean. users.chartertn.net J.T. Yes, I should be able to update the COT chart when the numbers are released tomorrow afternoon. leo