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Thanks Harvey,
That was me who asked. I just started to download alot of the "not so
common" indices from DialData and they only give you a name, but no real
indication of what they consist of.
Anybody happen to us Put/Call ratio or the other option based indicators as
a primary indicator or as a confirmation ? I am still real new to this and
would like to hear any comments or how theses indicators can be
interpreted.
TIA,
Charlie
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> From: Harvey Pearce <hpearce@xxxxxxx>
> To: metastock-list@xxxxxxxxxxxxx
> Subject: Put-Call Ratio
> Date: Sunday, October 19, 1997 5:46 PM
>
> There was a question yesterday concerning the put-call ratio. Since
> I've seen no other answers I'll chip in. Sorry I've mislaid the
> original message.
>
> >From "Options as a Strategic Investment" by Lawrence McMillan - 3rd.
> edition, 1993.
> "The put-call ratio is simply the number of puts traded divided by the
> number of calls traded. It can be computed daily, weekly, or over any
> other time period. It can be computed for stock options, index options,
> or futures options. Sometimes it is computed using open interest
> instead of volume. If it is calculated daily, one usually averages
> several days worth of figures to smooth out the fluctuations."
>
> Under the heading of More Than You Wanted to Know: from "Winning on Wall
> Street" by Martin Zweig - 1990. "It was shortly after finishing my
> dissertation that I invented the puts/calls ratio". ... "It was
> gratifying to be right again, and it made me even more eager to write
> another article. The next one was on the puts/calls ratio, to which I
> referred previously. This came out in the spring of 1971, when that
> indicator had just turned bearish. For the next seven months the market
> went down, and again I had hit the nail on the head".
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