put/call ratio at CBOE

M

MathAndLogic

It has been a while since I looked at the CBOE put/call ratio. I have not used it much because I don't see the separate volumes of long put, short put, long call, short call that go into the ratio. Therefore, I am uncertain about its value as contrarian indicator.

Comment? Thanks.
 
Generally speaking about contrarian indicator, you can use the 5% rule. ::

"The TradingMarkets 5% Rule. If you only follow one market sentiment indicator, it should be the TradingMarkets 5% Rule. The 5% rule states – Do not buy stocks (or the market) anytime the VIX is 5% below its moving average. Why? Because since 1989, the S&P 500 cash market has “lost” money on a net basis 5 days following the times the VIX has been 5% below its 10 day ma. That’s right, in spite of the S&P 500 rising over 300% since 1989, it’s lost money 5 days following the VIX closing 5% or more below its 10 day ma."
 
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