/biz/ - Business & Finance

>>53083004
0dte can be a lot more one sided than long duration options, either in the direction of puts or calls.
So as the 0dte volume increases proportionally so does the possible range of the P/C ratio.
You can see how during the COVID bull market this translated into historically low P/C, but now it's stupendously high as the market is overall bearish and short expiration options have increased even further.

If you were using P/C spikes here as a bottom indicator going back to 2008 (as they were often used in the past) you would have been wrong basically every time this year, it has always gone even higher, because options overall have become more volatile.

All this indicator is really showing is that it's broken.