NEW YORK (TheStreet) -- There's a stunning development happening in the options market.
The equity-only put/call ratio is hitting extreme levels. In fact, it's nearing one of its lowest-ever levels. On Wednesday, the put/call ratio closed at 0.38. Since 2003, the ratio has only dropped lower than that on six occasions.
At moments like this, we must ask ourselves: have markets become too complacent? Or are we in fact witnessing one of the greatest bull markets in history?
We've shared two charts below that perfectly show what the put/call ratio is doing right now and why everyone is so captivated by it:
1. Here's a remarkable view of the equity only put/call ratio vs. the S&P 500
. The recent divergence
between the two is absolutely mesmerizing:
2. One of the last times the equity only put/call ratio dropped this low was 2011. Here's a chart
showing exactly what happened then:
If you enjoyed this article, you can follow the author on Twitter
IBM Fights for Respect and Relevance on Rough Seas of Investor Confidence
Why Big Car Companies Don't Give A Rat's Ass About Tesla
5 Reasons to Change Your Outlook on Emerging Markets
Why SolarCity Is Shining Once Again for Investors
At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.