Loading ...Before I get too bearish:Specifically, the combined front-month gamma-weighted Schaeffer’s put/call open interest ratio=surged above 6.0 last week — the most elevated reading since 2011
In conclusion, there’s an abundance of near-the-money put open interest on the SPY, QQQ, and IWM — more than we’ve seen in over a year. As Schaeffer’s Senior V.P. of Research Todd Salamone noted on Monday, heavy SPY put open interest could translate into an options-related floor for stocks in the near term. What’s more, after previous instances when the combined front-month gamma-weighted SOIR of the aforementioned ETFs went north of 5.0, the stock market tended to rocket higher, while the VIX plummeted.