Research Excerpts

Chart Of The Week: Equity Options Volume

Posted on: Thursday, December 6th, 2012

The following is one of the 8 charts and analysis that were included in our our Monday 3rd Keys To This Week report (click here to view a sample report).

Keys To This Week, one of 8 different reports that we produce for subscribers throughout the month, is a comprehensive weekly outline of key market factors and corresponding charts and data pertaining to the US stock market and market sectors, US interest rates, and the US Dollar, that are most likely to influence US financial market direction during the upcoming week.

This chart displays the CBOE Put/Call Ratio since 2010 in the upper panel with a corresponding chart of the S&P 500 (SPX) in the lower panel.  The chart shows that, through the end of last week, the ratio is rising from historic least bearish extremes on the US stock market that have historically coincided with or led near term US stock market declines.

The key takeaway from this chart is that, historically, bad things happen (the US broad market peaks) when investors least expect it (as can be seen by the relatively low purchase of “market decline insurance” via puts, relative to calls).

We publish a brief excerpt like this one, taken from one of our premium research reports, every week as a means to stay on the radar screen of professional investors like you that have previously expressed an interest in Asbury Research. If you like our approach, we hope you will consider becoming a subscriber/client.

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