Options Traders Turn Giddy as Put/Call Ratio Hits 0.70 and ISEE Reaches 2.0

1 articles · Updated · TheStreet · May 15

Thursday’s options data showed the strongest risk appetite: the put/call ratio fell to 0.70, the ISEE call/put ratio hit 2.0—its highest in nearly two years—and the equity ISEE reached 2.90.
Those readings stand out because broader sentiment gauges look only complacent, not euphoric, with AAII at 39% bulls versus 36% bears and Investors Intelligence at 50% bulls against 22% bears.
Other indicators also stopped short of full-blown exuberance: Nasdaq’s Daily Sentiment Index sat at 81, the S&P’s at 80, and the VIX DSI at 19, all described as near but not fully at 'giddy' levels.
NAAIM exposure underscored the divergence, dropping to 77 from 97 a week earlier even as tech leadership stayed hot, suggesting professional managers were less aggressive than options traders.
The mix leaves the market in a 'complacent with a dash of giddy' state, with options enthusiasm flashing a potential short-term overbought warning after similar setups previously preceded pullbacks.

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