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On Apr 2, 2:41pm, Frank Ashok wrote:
> I came across this term on the CBOE web site.
> "The Dollar-Weighted Put/ Call Ratio "
> Does any list member know what it references or how it is calculated.
As a guess, for each call at the money or above do the following
sum(strike * volue)
and divide this by the similar summation for puts at the money or below.
Go out say, 30 OEX points on both sides of the at the money strike.
Then the next question, is should you give more or less emphasis for
strikes further out of the money? Some traders watch the ratio of
the far out of the money the money calls to the o-t-m puts, thinking
that gives a reading on where the speulators are hanging out.
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| Gary Funck, Intrepid Technology, gary@xxxxxxxxxxxx, (650) 964-8135
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