Put-to-Call Ratio

Wall Streeters will try anything short of a Ouija board to divine the next move of the market. The put-to-call ratio is popular and of some usefulness.

Experienced investors know that a call option increases in value as the price of the underlying stock or index rises. Hence, someone wanting to place a bet that the market is going to rally will buy calls. At the same time, a fund manager is likely to grab some call options as