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| The ISE Sentiment Index (ISEE) is calculated by the International Securities Exchange and designed to show how public investors (dumb money) view stock prices. The ISEE only measures opening long customer transactions on ISE. Transactions made by market makers and firms are not included in ISEE because they are not considered representative of market sentiment due to the often specialized nature of those transactions. Customer transactions, meanwhile, are often thought to best represent market sentiment because customers, which include individual investors, often buy call and put options to express their sentiment toward a particular stock. Please note that the ISEE is a ratio of call volume to put volume, so it is the inverse of the CBOE's put/call ratio: When there's been more put volume than call volume, the ISEE will be low and the CBOE's put-call ratio will be high. They furthermore multiply the ratio by 100, so the ISEE stands at 100, not 1.0, when there is an equal amount of put and call volume | ||
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Past performance does not guarantee future results!
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