How to Pick the Right Put Option
Michael Shulman, September 30, 2009
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Put/Call Ratios
The put/call ratio is a ratio of the trading volume of put options to call options, which serves an indicator of investor sentiment.
Several Web sites can help you determine what the put/call ratio is, and whether it is increasing or decreasing. Sites like Yahoo Finance can help with the overall number, while changes in the ratio are the province of some fee-based services.
If the number of puts is rising compared to calls, no time to be a contrarian, this is a good sign.
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