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Lottery calls distort options market, skewing bullish signals

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

排序理由 The article provides an opinion and analysis on options trading strategies, not a factual event.

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Lottery calls distort options market, skewing bullish signals

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  1. dev.to — Claude Code tag TIER_1 English(EN) · tellmefrankie ·

    98% of These Call Options Are Lottery Tickets. Here's How to Filter Them.

    <h1> 98% of These Call Options Are Lottery Tickets. Here's How to Filter Them. </h1> <p>Here is a number that should bother you: when you look at raw put/call ratios, you are looking at the wrong thing.</p> <p>P/C ratio is supposed to tell you where the smart money is positioning…