Personally, I don't believe you can determine market sentiment from open
interest figures. Put options can be part of a bullish market position, such as
long stock plus put (synthetic call) or short put.

A better gauge of predictive market sentiment is volatility skew. Academic
studies have shown that when put options have a higher volatility than call
options, indices have a tendency to fall:

http://cob.fsu.edu/fin/phd_papers/Volatility_skew.pdf



--- On Wed, 10/15/08, dumbull65 <no_reply@yahoogroups.com> wrote:
From: dumbull65 <no_reply@yahoogroups.com>
Subject: [Advanced Option Strategies] Heavy Put open interest
To: advancedoptionstrategies@yahoogroups.com
Date: Wednesday, October 15, 2008, 9:49 AM











PNC has heavy Oct Put open interest at 60 and 65. The stock is
around

60. Does this mean trading will attempt to keep stock price below 60?

Or something else?





























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