ARORA AMBASSADOR CLUB

GAIN AN EDGE: PUT CALL RATIOS

Edge

You can gain an edge by paying attention to put call ratios.

Sentiment

Sentiment is an important driver of the markets. Put call ratios are an important part of the sentiment.

Especially Important

Put call ratios are especially important when significant events are occurring such as the Russian attack on Ukraine or the Fed raising rates.

Unusual Activity

Many services and a television channel heavily promote trades based on unusual activity. The podcast shows you why this way of trading does not produce gains over a large number of trades over a long period of time.

Levels

Look for selling opportunities when the total put call ratio is less than 0.8.

Look for buying opportunities when the put call ratio is above 1.1.

Strong Signals

Strong signals occur when the put call ratio is around 2.0 for buy signals and around 0.5 for sell signals.

Fine Points

Listen to the podcast.

Skip to content