So I was reading about the put/call ratio and how it can be used as a sentiment indicator.
So a ratio of 0.7 or less is bullish. If it is between 0.7 and 1.0 it is neutral and if it is greater than 1.0 it is bearish.
This metric shows whether the call/put purchasers are bullish or bearish, but the option writers would have the opposite sentiment. So why is only one side taken into consideration?
I think I have an intuition as to why this is. The writers are more motivated by gathering up the time value and less about which direction the stock moves? They'd rather the stock price stay the same.