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This item downloads equity put and call data from the CBOE website. Three symbols are created and filled with historical data. These symbols are automatically added to your symbols list. Once symbols are created, you may want to fill their full names with the following information:
^PUT: Equity put options volume (The sum of all individual equities put options volume for each trading day)
^CALL: Equity call options volume (The sum of all individual equities call options volume for each trading day)
^PC_RATIO: Equity put-call ratio which is a ratio of the trading volume of put options to call options, that is, volume of put options contracts divided by the volume of call option contracts.
The symbols' data starts in October 2003 and are updated on a daily basis. The put/call ratio (PC_RATIO) is used as an investor sentiment gauge, where a high volume of puts compared to the volume of calls result in a high put/call ratio and indicate a bearish sentiment in the market. A high volume of calls compared to puts result in a low put/call ratio and indicate a bullish sentiment in the market. As many other sentiment indicators, the put/call ratio is mostly used as a contrarian tools where a bullish sentiment resulting from the put/call levels is a signal that a downside reversal is likely to happen.
The daily put/call data is very erratic and thus needs to be smoothed using for example a moving average or an exponential moving average. Ten is the most common time period used by traders to smooth the call/put raw data.
NB: Theses symbols use the volume of put and call options of individual equities that are traded only on the Chicago Board Options Exchange.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
