A new analysis reveals that the vast majority of call options traded are essentially lottery tickets, with strike prices so far out-of-the-money that they are unlikely to ever pay off. By filtering out these low-delta, far-out-of-the-money contracts, the put/call ratio signal is dramatically altered, often reversing from bullish to bearish. This suggests that retail investors are frequently chasing speculative calls while institutions are selling premium or positioning for downturns. AI
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RANK_REASON The article provides an opinion and analysis on options trading strategies, not a factual event.