In [1], Mark Arbeter has shown a Put-Call Chart using $CPCE with 5-day Moving Average to smooth out the data:
Put/Call Ratio
The Put/Call Ratio is an indicator that shows put volume relative to call volume. Put options are used to hedge against market weakness or bet on a decline. Call options are used to hedge against market strength or bet on an advance. The Put/Call Ratio is above 1 when put volume exceeds call volume and below 1 when call volume exceeds put volume. Typically, this indicator is used to gauge market sentiment. Sentiment is deemed excessively bearish when the Put/Call Ratio is trading at relatively high levels, and excessively bullish when at relatively low levels. Chartists can apply moving averages and other indicators to smooth the data and derive signals.
You can read StockCharts article for its interpretation.
Using similar concept except that we have inverted $CPCE, we have charted $ONE:$CPCE with the data on 10/19/2018 as below:
You can read StockCharts article for its interpretation.
$CPCE Charts
5-Day MAUsing similar concept except that we have inverted $CPCE, we have charted $ONE:$CPCE with the data on 10/19/2018 as below:
Video 1. Put/call Ratio 101 (YouTube link)
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