Here are some assorted examples of sentiment indicators:
Put/call ratio - A put option gives the purchaser the right, but not the obligation, to sell a security for a certain price by a specific time. Conversely, a call option gives the buyer the right, but not the obligation, to buy a security for a certain price by a specific time.
An extremely high put/call ratio indicates fear in the market, since more investors are betting on a downturn rather than an upturn.
On the other hand, an extremely low put/call ratio indicates an abundance of optimism, as investors are aggressively betting on future stock market gains.
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