Chart of the Day - Thursday, November 17th, 2022

Today’s Chart of the Day was shared by Steve Sosnick (@SteveSosnick). Many people are highlighting the fact that the CBOE Put/Call ratio spiked to one of its highest readings ever yesterday, signaling extreme fear. That should be wildly bullish for stocks,  however, Steve explains why it might be misleading. The chart shows two different Put/Call ratios. The yellow line is the ratio in question. It's certainly at an extreme, however, it only measures options on one exchange - the largest exchange, but there are 15 other exchanges. The white line is the Put/Call Ratio for all options across all exchanges. While it's slightly elevated, it's nowhere near extreme. For more on this, check out the full thread here.