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Posts: 1,054
Reply with quote  #1 
After one of the best weeks in a lifetime for short sellers/put buyers, the premiums being paid by equity options put buyers are getting pricey.

This chart is the average small equity options trader (1 to 10 contracts per transaction) Buy-To-Open (BTO) premium put-call ratio. The OCC has published this data for nine years, and last week's smallest trader BTO premium PC ratio, at 1.70, eclipses the previous record of 1.48 set the week of July 22, 2002.

"The" bottom may not be in yet, but one could assume the writers of these equity put contracts (the majority likely being market makers) will end up walking away with the lion's share of these rich put premiums.

Of course, all of the extremes observed last week could reach yet higher extremes, but temporary relief for the bulls is getting close.



Posts: 5,135
Reply with quote  #2 
A timely post, especially for those who may be holding "crash puts" at this time.

Stay focused.


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