|Simple Trading Ideas||
The daily chart below shows CPC, the CBOE Options Total Put/Call Ratio. CPC is increasing when investors start to get more bearish and want to protect their portfolio by buying more put options. The Total Put/Call Ratio has been sharply increasing in the past two weeks. Normally the correlation between the Total Put/Call Ratio and the S&P 500 is negative but notice how recently this correlation turned positive meaning they are both moving in the same direction, higher. You can see the correlation coefficient in the indicator window below the chart.