Put-to-Call Ratio Hits Lowest Since 2022 as US Stocks Hit Records, Warning of Overheating

Investors flooded into call options last week, driving a key sentiment gauge to its lowest level in over four years and raising alarms that U.S. equity markets may be overheating. The Cboe equity-only put-to-call ratio’s five-day moving average fell to 0.452 on Friday, May 29, 2026—the weakest reading since March 30, 2022—just as the S&P 500, Dow, and Nasdaq all closed at fresh record highs on Monday, June 1. Mark Arbeter, president of Arbeter Investments, said the ratio shows call demand more than double that for puts, reflecting what he called “euphoric” retail sentiment fueled by artificial-intelligence enthusiasm. “Historically, this ratio is really low,” he noted, pointing out similar extremes preceded the 2022 bear market and the 2021 year-end top. The 21-day moving average also dropped to 0.493, its lowest since Dec. 9, 2021. The warning comes amid stark internal divergence. While the Cboe Volatility Index (VIX) slips, individual stock volatility measured by the VIXEQ index is near a one-year high and its spread over the VIX has widened to a record. AI-related information-technology shares led Monday’s advance, rising 2.5%, even as most other S&P 500 sectors fell.