According to an article in Bloomberg recently, the put to call ratio on the CBOE Volatility Index (VIX) is the highest it has been since January 2009. Currently, there are around 101 puts to every 100 calls on the VIX as traders bet that volatility will fall and the recent rally in stocks will continue. The bullish bets on the stock market come on the heels of a massive rally in the S&P 500 over the last week which has caused the VIX to fall to 30.56.
This is signalling a return to some semblance of normality. The option activity is bullish for stocks, but it also means that investors are taking off their hedges. If any unexpected bearish news were to come out, this could cause the market to fall faster than normal because market participants are not as hedged as they were earlier this Fall.