Put to Call Ratio Calculator

Put to Call Ratio Calculator calculator can be used to determine the balance between put options and call options in a market or portfolio, helping investors assess market sentiment and potential volatility.

Input Parameters

Calculation Results

Put to Call Ratio

0.00

Calculation Formula

Put to Call Ratio = Total Put Options Volume / Total Call Options Volume

Where:
Total Put Options Volume: The total number of put options traded
Total Call Options Volume: The total number of call options traded

Interpretation

The interpretation will appear here after calculation.

Put to Call Ratio Calculator Calculator Usage Guide

Learn how to use the Put to Call Ratio Calculator calculator and its working principles

How to Use This Calculator

  1. Enter the total volume of call options traded in the market or portfolio in the "Total Call Options Volume" field.
  2. Enter the total volume of put options traded in the market or portfolio in the "Total Put Options Volume" field.
  3. Click the "Calculate" button to compute the Put to Call Ratio.
  4. The calculator will display the ratio along with an interpretation of what it means for market sentiment.

Understanding the Put to Call Ratio

The Put to Call Ratio (PCR) is a market sentiment indicator that compares the volume of put options to the volume of call options. It helps investors assess whether the market is leaning toward bullish or bearish sentiment.

Interpretation Guide:

  • PCR < 0.5: Bullish market sentiment - More call options are being traded, suggesting investors are optimistic.
  • 0.5 ≤ PCR ≤ 1.5: Balanced market sentiment - The number of put and call options is relatively equal.
  • PCR > 1.5: Bearish market sentiment - More put options are being traded, indicating investor fear or pessimism.

Example Usage

For example, if a market has 1,000 call options and 800 put options traded, the PCR would be 0.8. This would indicate a bullish market sentiment, as there are more call options than put options.

Important Notes

The Put to Call Ratio is most effective when used in conjunction with other technical indicators and should not be used in isolation for trading decisions. It provides insights into market sentiment but does not predict future price movements.