Sensitive-Cold-4956 t1_iy0h15h wrote on November 27, 2022 at 8:36 PM

Reply to comment by dickmidget in PUTS ANYONE? by Stock_Man69420

I ask this myself. They say 99% of retail is 100% long. Most retail is down way more than the SPY this year.

You ever try to explain to your college educated friends how calls and puts work? They look at you like you’re speaking Arabic. Maybe they can understand calls… but puts? What percentage of retail could buy puts even if they wanted to? Are they even approved through their broker?

I think the more realistic explanation here is that most of retail’s $ is in ETFs in their 401ks, in various longs, and cash. If SPY were to fall off of a cliff, I don’t think the single digit retail who are options approved and willing to press the Put button will matter all that much.

Also sounds like the perfect situation for institutions to take from retail with minimal resistance.

estacks t1_iy1eplx wrote on November 28, 2022 at 12:32 AM

This is the realistic take. You have to be smart money to even know the existence of options.

https://ycharts.com/indicators/cboe_equity_put_call_ratio

Smart money is DCAing into bearish bets at a record ratio on every low IV day each week.

dickmidget t1_iy0krg3 wrote on November 27, 2022 at 9:00 PM

The people I’ve talked to do understand the difference between calls & puts, along with the investment criteria behind such moves. I must confess that I am still learning and trying to evolve in this crazy market.