Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Stocks

Weird Wednesdays for Put/Call Ratio

by November 30, 2023
November 30, 2023
Weird Wednesdays for Put/Call Ratio

There is a weird phenomenon that has cropped up in the options markets over the past couple of years. Even weirder is that this weird new phenomenon is flipping itself around.

The CBOE Put/Call Volume Ratio compares the numbers of put options and call options traded each day. A high reading means that comparatively more puts are getting traded, as options traders are convinced that prices are going to go down. Usually, a high Put/Call Ratio reading is a sign of a short-term bottom, because it means that traders have turned pessimistic.

However, starting in 2022, there was a weird phenomenon in which the Put/Call Volume Ratio would spike on Wednesdays, and not in any relationship to what prices were doing. And it has happened again in September and October 2023 with these weird Wednesday spikes. I have not seen a good explanation for why this has been happening.

The weirder development is that the Wednesday high Put/Call spikes have now flipped to low readings. The high readings we were seeing in September and October happened as the S&P 500 was trending downward, and options traders were employing sophisticated strategies, selling puts as part of that downtrend. But now they are doing the opposite, emphasizing call trading on Wednesdays in a price uptrend.

We saw this same phenomenon of Put/Call Ratio spikes in 2022, first during the big market down wave in April to June 2022, and again late in the year.

When the S&P 500 returned to an uptrending mode in early 2023, the weird Wednesday phenomenon stopped.

I wish that this phenomenon offered us some great edge on how to make money trading, but sadly it does not. That said, it is still worth knowing about, so that we can keep ourselves from misinterpreting a big single day’s Put/Call reading — especially on Wednesdays. Knowing why something is happening is not nearly as important as knowing that it is happening, so that one does not inadvertently draw erroneous conclusions from seeing it.

0
FacebookTwitterGoogle +Pinterest
previous post
Unlock the Secrets of Five Candlestick Patterns
next post
Skepticism Over the OPEC + Oil Cuts

Related Posts

A Key Momentum Indicator Shifts from Bullish to...

October 5, 2023

Finding Setups as Markets Wait for October CPI

November 14, 2023

GNG TV: Looking at a Relief Rally or...

October 16, 2023

Six Leaders, but One Is Getting Real Frothy

May 11, 2024

Slower Job Growth, Treasury Yields, Earnings: Stock Market...

August 4, 2023

New US Tariffs and Intensifying US–China Trade War:...

April 13, 2025

Growth Stocks Seen THRIVING in Anticipation of NVDA...

August 23, 2023

Can Nvidia’s Stock Skyrocket Again? Key Levels to...

June 28, 2024

The Top Three Indicators Pressuring Earnings Right Now

October 5, 2023

Week Ahead: NIFTY Set To Open Lower; Relative...

April 6, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Fed Watch: Key Bullish Patterns in the S&P 500, Utilities, and Crypto

    • Three Charts to Watch for an “All Clear” Signal

    • Use This Multi-Timeframe MACD Signal for Precision Trades

    • The Unpredictable Stock Market: How to Make Sense of It

    • Crypto Market Recap: New Hampshire Launches First State Crypto Reserve, Trump Stirs Controversy

    • SAGA Metals Extends Claims at the Radar Ti-V-Fe Project –Securing the Entire Titanomagnetite-Bearing Intrusion

    Categories

    • Business (1,181)
    • Investing (2,402)
    • Politics (3,699)
    • Stocks (1,551)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved