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Put Call Ratio Calculator
Input details in Put Call Ratio Calculator
PCR stands for Put-Call Ratio, which is a commonly used technical indicator in the stock market. It is a ratio that compares the trading volume of put options to call options.
- Put options give the buyer the right, but not the obligation, to sell an underlying asset at a specified price within a specified time frame.
- Call options give the buyer the right, but not the obligation, to buy an underlying asset at a specified price within a specified time frame.
- If the ratio is above 1, it suggests that traders are buying more puts than calls, which indicates that they are bearish on the market.
- If the ratio is below 1, it suggests that traders are buying more calls than puts, which indicates that they are bullish on the market.
- The Open Interest Put-Call Ratio uses the open interest data, which represents the total number of outstanding options contracts, instead of the trading volume data.
- The Put-Call Ratio is a useful tool for traders and investors to gauge the overall market sentiment and make informed decisions about their trading strategies.