Market Measures - August 7, 2018 - Put Richness

published 2 weeks ago by tastytrade, Inc.

On average, puts trade at a higher premium to calls at the same delta. Is a higher put/call price ratio indicative of better POP or average P/L? ### Study: * SPY, 2005-2017, 45 DTE * Sold 16 delta strangles * Compared: * Selling strangles whe...

Richest you know where they're going this. I believe so okay how rich of those damn puts towards the team today. So on average puts traded a higher premium to calls at the same delta if you look right now you'll see in the spiders and we put it here the current 16 delta call prices 70 cents the current 16 delta put the prices 117. The average could call ratio is 1.8. That means Mr bat that the average put is 1.8 times the price of the call. I used to say they were isa say they you know I I would make up some number figure out of town to do it one at a sign yeah 0.5 whatever but it wasn't too it's 1.8 we went back and we did ...

more episodes from The full tastytrade network