Derivatives

Call-heavy positioning

Call open interest dwarfing puts — optimism crowded enough to be worth distrusting.

A put-call ratio this low means the option book is almost all calls: the upside is crowded, the downside unhedged. Sometimes that is early conviction in a genuine move; at least as often it is late enthusiasm — the fuel for a stall, since heavy call writing above the price gives sellers levels to defend from the other side. A positioning extreme is a condition to notice, not a direction to trade blindly.

More derivatives:Long buildupShort buildupShort covering rallyLong unwindingOpen interest at a 3-month high