One reason to track Put/Call ratio is to judge the market bearishness or bullishness. However, if one juxtaposes VIX indicators along with P/C ratio, one gets a better sense of trend too. Here is more gyan on it. Link : Put/Call ratio Vs Vol Indices

CODE LIBRARY Have just started organizing the code that I have written over the last 12 months. Sourceforge is the best thing to use for such purposes. Here is the link to 100 odd classes that I written for pricing derivatives. Need to comment Finite Difference code and upload it . May be I will do it over the labor day weekend. Link to my QuantFin Library : Source Forge:Quantitative Finance C++ Library

An option writer needs to have this plastered in his room :)

Via a comment on some blog : “Trading isn’t about profit and loss. It’s about self-actualization. There are many ways to fulfill your potential. We happen to choose trading. And that’s not a small thing. Success and failure in this arena is beyond our control, and what’s more, it can be objectively measured, and I think that is why trading failures cause so much cognitive dissonance. We suffer so much when we lose not because we can’t handle being wrong, but because every defeat moves us one step farther away from self-actualization.

Determining whether a variable is deterministic or stochastic has been my biggest problem till date and sadly, every time I have failed in classifying . The problem arises when the variable morphs from deterministic to stochastic and back to deterministic and I have no clue how to go about it. I think the best approach that I am following now is : Why give a damn :) Let it be any variable .