Call/Put Ratio of CBOE Equity Options

This indicator is calculated by dividing the weekly volume of call options by the weekly volume of put options. Big call volume appears at market tops and big put volume at bottoms. We use only CBOE equity options for this indicator. Call/put 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 weekly call/put ratio on a 4-week moving average to smooth out the swings.