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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Real Man who wrote (81807)10/11/2008 9:57:48 AM
From: Cynic 2005  Read Replies (1) | Respond to of 94695
 
Vi,

Your meltdown due to delta-hedging scenario is scary. But, put call ratio improved during Friday's trading - from 2.06 at close to 1.23 at the close. (I myself closed a lot of puts and opened calls)

cboe.com

Also, as of close on 10/10, Index put call ratio is 1.41

cboe.com

I don't have any historical comparison to draw here.
~ Can increased call buying on Friday bring about an upside delta hedge?
~ Can we say/assume that a lot of puts were closed on Friday?
~ Is 1.41 (how many of them are near term, anyway?) so out of whack that it will bring a complete meltdown?