Wednesday, April 22, 2015

Stealth Liquidation: Institutions Are Dumping This Level

Goldman Sachs must have tipped them off

April 22, 2015 J. Lyons Fund Management

"Since 1998, the put/call ratio on open interest in OEX [S&P 100] options has been considered extremely elevated when it has risen above 2.00. From 1998 to 2011, there were just 6 days when the ratio got as high as 2.00. Each of those days either came in the vicinity of a significant market top or at least presented extremely limited upside in the intermediate-term.

"In the second half of 2014 alone, there were 8 readings."

"And 2015 has ratcheted up the frequency of such readings to a whole other level. There have now been no less than 34 readings above 2.00, all coming in the past 2 months."

"Before a week ago, the highest level of the OEX open interest put/call ratio since 1998 was 2.31 in November 1999. The past 2 days have seen readings of 2.77 and 2.79!"

Someone always knows something. Don't they?