CBOE Put/Call Ratio Falls to a 4-Year Low… Is All the Fear Gone?

All the bears are hibernating deep in their caves, and everybody is fearless!

As I’ve mentioned a few times, I generally consider the CBOE Put/Call Ratio to be a contrarian indicator, meaning that if investors are buying far more puts than calls, that could signal bottom in the market.

This is especially true if that ratio spikes to a historically significant level (anything 1.2 or higher), like March 2020 and a few other occasions in the past 10 years.

Apparently, though, all the fear that occurred in early to mid-April has evaporated, as the Put/Call Ratio is back to a 4-year low of 0.62!!

Be careful out there! – Chris

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Thanks in advance! - Chris

(Source: Barchart, 5/13/25)

NOT FINANCIAL/TRADING ADVICE!