Options Players Remain A Skeptical Bunch

Despite the market holding onto its rally, option players remain skeptical. The Dow is up +250 points currently, while the Nasdaq is up +2.2%.

But the CBOE put/call is still high at 1.25, and the ISEE remains very depressed at 58.

The 10-day averages for both of these sentiment indicators are in extreme territory, which has normally been associated with rallies in the market.

If the market can hold onto these gains, or even build into the close, it could spark additional short covering.