PCSPX trade ideas
Using the SPX put call Ratio to trade SPX This chart provides insight into how to use the SPX P/C ratio chart coupled with Bollinger bands to make high-probability trading decisions. Each time the P/C spikes above or below the Bollinger band it mean reverts that same day. For this example, I used the SPX daily chart to show when price action hit resistance the P/C chart rose to extremes quickly the next day resulting in a sell-off in the SPX. I hope this adds another weapon to your trading tool belt!
Using the SPX put call Ratio to trade SPX This Idea gives a strategy for using the SPX put call ratio to make great trading decisions when coupled with the Bollinger Band. You will notice each time the price goes outside of the Bollinger band price put call ratio mean reverts the same day. Green candles go to red below 1.0 and the red candles to green above 2.0 and this reversion happens quickly. If you couple the P/C chart with the SPX daily chart you can make well-informed high probability trades in any stock. I hope this adds value to your trading tool belt. Talk to you all soon.
SPX - DANGER - PUTCALL RATIO AT THE LOWEST SINCE MANY YEARSHello,
This is the PUT CALL ratio at 0.52, saying that for every put there are 2 calls around. It is the lowest level since many years, meaning that
1- there is a lot of optimism in the market (usually followed by a drop)
2- investors want to ride this rally until it lasts, and for this goal it is better to have options that just the underlying.
Of course the TF is weekly and we are just in the first day of he week so the data can change, but it is the sameon the daily also. I used the weekly TF just to show you more data in the past.
Keep your eyes open
