Put/Call Ratio of CBOE Equity Options

This indicator is calculated by dividing the weekly volume of equity put options by the weekly volume of equity call options. Big call volume appears at market tops and big put volume at bottoms. We use only CBOE equity options for this indicator. Put/call ratios of the indices like OEX and SPX are distorted and clouded by arbitrage and hedging and do therefore not reflect true investor sentiment. The chart below shows you the put/call ratio of all CBOE equity options on a 4-week moving average.