Put/Call Demand Ratio Shines Light On Investor Activity, Trend Factor

Tweaking analysis of the put/call ratio to focus on out-of-the-money options can tell options traders much more about market direction and could even prove to be an effective indicator for trend-following strategies, according to new research from OptionMetrics’ Garrett DeSimone. The drawback with a typical, more basic, put/call analysis that simply divides total put volume