Put/call vs Volatility

I am posting this chart because it strikes me as unusual .. put/call very high, while the volatility is showing little interest in what's going on.

is there an explanation for this?

Well, put/call ratio just measures the ratio between the OI of puts versus OI of calls to give an indication of how bullish or bearish is the market at the moment, nothing to do with volatility anyway.

The VIX/VXN are calculated using the indices options implied volatilites. Volatility is an important input to options pricing formulas. Sometimes, market players pay more for options today in anticipation of more volatility in the future. Increased option premiums result in higher implied volatility and that's what affects the volatility indices.

Regards,

Nader

thank you Narafa .. in any case, both of them have settled into comfortable middle-age .. for the time being.

a quote: VIX readings of 50 or higher are associated with near-to-intermediate term market bottoms, and VXN readings of 70 or higher with the same.

not anywhere near that now! more like intermed market tops.

Well, the quote you mentioned is approximately true.

In theory, high readings of VIX or VXN are not necessarily an indication of a market bottom. That's because volatility can increase if the market is going up or down. However, since it's well known in the real world that volatility in equity markets tend to increase with declines and not with rallies, it has been assumed that high VIX/VXN readings are associated with market bottoms.

Regards,

Nader