How does increased put action translate into higher stock price movement?
Monday, May 10th, 2010 at
5:16 pm
I was listenning to an analyst talking about Monsanto increased put action and housing stocks with same ….on CNBC this morning. He said they have been watching increased put action and making this determination!
I always thought increased put action meant a stock was going lower, that there were bets it would go lower? Of course, someone has to be writing the puts too……..?
Tagged with: bets • cnbc • monsanto • Stock • stocks
Filed under: Stock Market
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I agree with you. High volume of puts should translate into lower future stock prices. Also, a recent study finds buying stocks with low (newly opened) put/call volume ratios and and selling high ones yield positive returns.