Learn how to use the put - call ratio (PCR) to measure market sentiment and investor behavior. The PCR is the ratio of put volume to call volume or open interest on a market index or security. The put-call ratio is an indicator typically used to determine the mood of the market. Know more about its meaning, calculation, significance, and more. Learn what Put-Call Ratio means in stock trading, how to calculate it, and how traders use it to gauge market sentiment and make smart decisions. What Is the Put-Call Ratio (PCR)? The put-call ratio (PCR) is an indicator used to get an idea of the overall sentiment of investors. The ratio can be calculated for any given stock or index on any given day. The ratio compares the demand for the two classes of options contracts, puts , and calls. It is straightforward; however, the calculations can vary quite a bit. It is standard for the PCR to be calculated on a given day, but it can be calculated based on open interest or trading volume ...
