The put/call ratio shows investor sentiment and is a reasonably reliable indicator of the near-term market direction. Nevertheless, it is a judgment-based decision. Rules-based decisions such as the six habits of the Monday Morning Program are always right. Judgment-based decisions are frequently wrong.
That was the case last Monday, July 24, and our fearless, intrepid investor wrote (sold) just-out-of-the-money covered calls on SPY. She collected a nice premium income, but SPY rose instead of declining as expected, and she was assigned.
What will our fearless, intrepid investor do when the market opens today?YOU NEED TO LOGIN TO VIEW THE REST OF THE CONTENT OR LEAVE A COMMENT. Please Login. Not a Member? You can now sign up for $12 for a one-year membership. Join Us