TLDR:
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Institutional options sentiment has collapsed to zero, signaling extreme bearishness.
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Prospero data shows risk appetite has vanished, often a precursor to a bear move.
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Heavy put buying and little call demand suggest institutions are hedging aggressively.
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SPY sentiment ranks in the most bearish percentile, historically a bad sign.
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Headlines suggest recovery, but options flow indicates more downside risk.
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Market could see further pain unless sentiment shifts.
Source:
https://www.reddit.com/r/options/comments/1jhy8l4/institutional_options_hedging_surging_as/