Call-heavy positioning
Put-call open interest ratio under 0.4. Optimism crowded enough to be worth distrusting.
A put-call ratio this low means the option book is almost all calls. The upside is crowded and the downside unhedged. Sometimes that is early conviction in a genuine move. At least as often it is late enthusiasm and the fuel for a stall, since heavy call writing above the price gives sellers levels to defend from the other side. A positioning extreme is a condition to notice, and it does not point in a direction on its own.
More derivatives:Long buildupShort buildupShort covering rallyLong unwindingOpen interest at a 3-month high
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