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To: Carmine Cammarosano who wrote (10326)11/15/1997 12:23:00 PM
From: Chi-X  Read Replies (2) | Respond to of 45548
 
Yes put activity is a contrarian indicator. I often hear CNBC saying that when the put activity is at its lowest (often says it when stocks are rising), then it is not a good sign.

You can also relate put activity to short sellers piling it on. The higher the short interest is in a stock, the more bullish the indicator.


Cheers,
Chi-X hath Spoken!

"There shall be no wine, before its time."



To: Carmine Cammarosano who wrote (10326)11/15/1997 1:47:00 PM
From: Jeff Grover  Respond to of 45548
 
the stock is going up!

I assume you mean will go up?

After all a 25% pullback in 8 straight down days, or put another way a 50% pullback in 30 trading days, can hardly be called going up.