• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Weird Wednesdays for Put/Call Ratio
Stock

Weird Wednesdays for Put/Call Ratio

by December 1, 2023
by December 1, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

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.

You Might Also Like
  • Week Ahead: NIFTY Violates Important Levels; Stay Cautious And Selective In Approach
  • Long Bonds Continue to Break Down
  • Equities Continue Surge Amid “Healthy” Rotation
  • Friday’s 20% Gain Has This Stock’s Short Sellers Running For The Exits
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Skepticism Over the OPEC + Oil Cuts
next post
Thousands of autoworkers at Toyota, Honda and others move to unionize after UAW victory over the Big Three

You may also like

The Halftime Show: It’s NOT What the Fed Does That...

April 17, 2023

TECHNOLOGY AGAIN PROVIDES ONLY SPARK FOR MARKETS

June 24, 2024

Performance Profile Paints Different Pictures for Commodity and Equity ETFs

March 28, 2025

Two Consumer Stocks Popping to New Swing Highs!

June 27, 2024

Dell’s Bullish Climb: Should You Get In Now?

October 17, 2024

AppLovin’s 1,303% Rise: The Hidden Power of the SCTR Report

November 20, 2024

What’s NEXT for Semiconductors After Monday’s SHOCKING Drop?

January 27, 2025

How Long Can Semiconductors Lead the Market?

March 8, 2023

U.S. Oil Reserves Drop to 40-Year Lows

June 29, 2023

Covered Calls: Dipping Your Toes In the Options World

August 2, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


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

    Recent Posts

    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025
    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025
    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,630 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,576 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,169)
    • Investing (538)
    • Stock (2,661)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025
    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,169)
    • Investing (538)
    • Stock (2,661)

    Disclaimer: RoundTableThoughts.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 © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Sector Spotlight: Sector Rotation Out of...

    July 11, 2023

    How RRG Helps To Find Two...

    November 24, 2023

    Double Top on Semiconductors (SMH)

    July 18, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here