If the put/call ratio increases, market contrarians may interpret this as what kind of signal?
A) buy signal
B) sell signal
C) hold signal
D) this is not interpreted as a signal

Question

Quizplus · Accepted Answer

An increase in the put/call ratio is often interpreted by market contrarians as a buy signal. This is because a higher ratio suggests that investors are buying more puts than calls, indicating bearish sentiment. Contrarians believe that when sentiment is overly bearish, it might be a good time to buy, as the market could be nearing a bottom.

If the Put/call Ratio Increases, Market Contrarians May Interpret This