Options show U.S. stock love is lacking in equity indexes
Here’s my chart for today. I’ll talk about it shortly after 3:30 p.m. Eastern (12:30 p.m. Pacific) on the Bloomberg Businessweek radio show. Also, I’ll present my Stock of the Day just after 4:15 p.m. (1:15 p.m.) on social media. You can hear me on Bloomberg Radio or see me at Bloomberg Global News on YouTube.
“Lots of love for equities but not indexes” is evident in options linked to U.S. shares, according to Liz Ann Sonders, Charles Schwab Corp.’s chief investment strategist. She drew the conclusion in a Twitter post Friday by comparing put-call ratios for equity and stock-index contracts, as compiled by Cboe Global Markets. Less than one put option changed hands for every two call options in the 20 trading days ended Thursday. For index options, the comparable 20-day average exceeded 1.6 puts for every call. The resulting gap between the ratios was the widest since August 2007.