Put writers underneath
Heavy put open interest under an uptrend — option sellers paid to defend the levels below.
A put-call ratio above 0.8 means put open interest rivals call open interest, and most of that put OI is written, not bought: sellers collecting premium who now have a financial interest in the stock staying above their strikes. In an uptrend that behaves like a floor being defended. The same ratio in a downtrend reads very differently — panic hedging — which is why the trend filter is not optional.
More derivatives:Long buildupShort buildupShort covering rallyLong unwindingOpen interest at a 3-month high
from
Match all of