PCR Trading

The Put-Call Ratio (PCR) is a popular technical indicator used by investors to assess market sentiment. It is calculated by dividing the volume or open interest of put options by call options over a specific time period. A higher PCR suggests bearish sentiment, while a lower PCR indicates bullish sentiment.

Let's delve into the concept of put/call ratio, which is derived by dividing the put trading volume by the call trading volume. A put/call ratio of 0.74 indicates that for every 100 calls purchased, 74 puts were also acquired.