Options Speculation Index
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Definition
Composite gauge of speculative option activity, typically combining call-buying and put-selling volumes relative to total flow, to measure how aggressively traders are betting on rising prices.
How to read it
The Options Speculation Index aggregates bullish-leaning option activity (opening call-buying plus put-selling, both bets on higher prices) as a share of total activity, producing a single speculation reading. High values mean the crowd is aggressively positioned for upside (contrarian caution / complacency); low values mean speculation has been wrung out (potential washout). It captures the intensity of bullish option speculation better than a raw put/call ratio because it explicitly counts premium-selling of puts, which a buy-to-open ratio can miss.
How practitioners use it
Used as context among multiple indicators — never as a standalone signal to act.
Less common professional uses
Because it counts put-selling as bullish, it captures income/premium-selling regimes that buy-to-open put/call ratios (like ROBO/LOBO) miss, making it a useful complement rather than a substitute. The index blends several inputs with a chosen weighting; different constructions produce different extremes, so treat the methodology as part of the signal and do not compare levels across vendors. 0DTE and short-dated call volume can inflate the speculation reading; a de-trended or percentile view guards against a structurally rising baseline being misread as a new extreme. Speculation extremes can persist through strong trends; pair with breadth and price to avoid fading a durable advance too early. Compilation relies on end-of-day option flow, so the index lags intraday sentiment shifts.
Sources & provenance
Composite of Cboe/OCC option volume by type (call-buying and put-selling flow)
This page is educational content published by Pachira Aquatica Global LLC. It is not investment advice and not a recommendation.