Zeev's Turnips Patch-No Politics (ZEEV)

[pstuartb]

Re: vxn and vix.

I read an interesting article today, that I can't re-post, on what it means when the vix and vxn are dropping hard, while the p/c ratio is rising.

The author suggests that individual investors are so complacent that not only has the buy demand for options decreased, resulting in smaller premiums and lower vix and vxn readings, but J6P is now selling relatively large quantities of cheap puts to market makers, resulting in a rising p/c ratio.