N:SPY Put-Call Ratio Collapses on a Surge in Calls
The SPY put-call ratio collapsed to 1.06, piercing the ratio’s bottom Bollinger Band, on almost a 50% surge in call volume. SPY put volume was up by less than a percent. There was a good-sized jump in open interest.
This is a classic pattern on triple witching Thursdays.
If you look at past collapses in the ratio on triple witching Thursdays, you will find that all of them are characterized by big jumps in call volume on rising open interest. The collapse in the ratio tends to be followed either by an immediate collapse in prices, a sideways move for one to a few days followed by a price collapse, or a small price rise that lasts up to a few days, followed by a price collapse.
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