2026-02-15 00:12:45

THIS IS EXTREMELY HARMFUL!!

Look at the chart below. It shows the S&P 500 index compared to the call/put ratio.
Am I the only one seeing this pattern?
January 2024, P/C Ratio: 1.2 → S&P PLUMMETS
April 2024, P/C Ratio: 1.2 → S&P PLUMMETS
August 2024, P/C Ratio: 1.1 → S&P PLUMMETS
April 2025, P/C Ratio: 1.1 → S&P PLUMMETS
Not just once. IT'S ALWAYS LIKE THAT.
And now, the call/put ratio is approaching a new high around 1.1, but the S&P index is still sideways.
This is a direct relationship, simply put.
When the call/put ratio spikes, it means everyone is buying way more put options than call options.
And someone has to sell those put options. Usually, brokers and market makers.
So, brokers are stuck in a SHORT position on put options.
And when you short sell put options, you hedge risk in only one way.
You SELL the risk related to the S&P index.
Futures. ETFs. Stock baskets. Anything with high liquidity.
So, the process is very simple:
Buy more put options → brokers sell S&P to hedge risk → S&P loses support level → S&P reverses.
And now, this ratio has returned to the HIGHEST level since the Liberation Day crash.
So, the setup is very straightforward.
- If this ratio remains high, selling pressure will continue to impact the S&P.
- If the S&P declines, hedging will worsen and could create a negative feedback loop.

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