The Bull–Bear Index (BBI) measures whether traders allocate more capital to call options (bullish) or put options (bearish). It is calculated as the difference between call and put premiums from buyers, normalized by their sum. A value of 1 indicates only call option buyers (strongly bullish sentiment). A value of minus 1 only put option buyers (strongly bearish sentiment). Values near the middle represent a neutral balance. The index is also segmented by options maturity: Short term (Between 0 and 30 days): near term conviction. Mid term (30 to 90 days): tactical positioning and event driven bets. Long-term (>90 days): strategic positioning and structural sentiment.
