As of August 27, the 5-day average volume of CBOE call and put options fell to approximately 6.6 million and 5.3 million contracts respectively, with the ratio rising to 1.25.
However, this increase in the ratio does not indicate a surge in bullish trading, but rather a faster contraction in put options, more closely resembling a "retreat in hedging demand + temporary market observation."
The next focus should be on how, with declining options participation and insufficient position protection, the next round of macroeconomic or earnings catalysts is more likely to trigger a repricing of implied volatility. (Note that the chart only covers specific stock options and short-term averages and does not represent a synchronized cooling of the entire US options market.)
