Short Term Trading Member Forum

[techcharter]

SPY Options Observations

I was bored the other day and started plotting the open interest in SPY options. I was saw bell shaped curves for Calls and Puts as expected. What surprised me was they were not centered around the 138 area. The peak in Puts is SPY = 125. The peak in Calls is SPY = 141. Amazingly the Put/Call ratio of in the money options is 0.03. This is completely unbalanced and represents complacency. A P/C ratio of 0.5 would mean a drop in SPY to the 135 area. The chart shows a little support at the 126 area.


I would love to have decades of this kind of data to see if there is any corelation with options open interest distribution and future market moves.