The put/call ratio is a ________ indicator.
A) sentiment
B) flow of funds
C) market structure
D) fundamental

Question

Quizplus · Accepted Answer

The put/call ratio is a sentiment indicator that measures the ratio of put options to call options being traded in a particular market or security. It reflects the prevailing mood or sentiment of the market participants, whether bullish or bearish. A high put/call ratio indicates a bearish sentiment, while a low put/call ratio indicates a bullish sentiment. Therefore, the put/call ratio can be a useful contrarian indicator for traders and investors to gauge market sentiment and potential market reversals.

The Put/call Ratio Is a ________ Indicator