User 366367

Option Ratios Urge Cautious Investing

Though this article seems to be accurate in its content, i was just wondering if one could completely and plainly rely on ISE sentiment index and CBOE p/c ratio. Though i am not a great options person, from what i understand of options a call option would include NOT just LONG Calls, but also those SOLD their calls. And at the end of the day, when you look at the total CALLS, would it not include BOTH bulls and bears. If this is the case, then how can we rely on this metric if it is not truly showing if the underlying sentiment is 100% bull or bear?

May be i am missing something, but any comments would be great.

Thanks