Put Call Ratio
The put call ratio compares put activity with call activity over a specified market, security or period. Depending on the dataset, it may be calculated using: volume or open interest.
Why it matters to you
The ratio can provide context about relative put and call activity. A higher ratio indicates greater put activity relative to calls under the chosen measure. A lower ratio indicates greater call activity relative to puts. But: Put activity is not automatically bearish and call activity is not automatically bullish. Options may be used for hedging, income, spreads and other strategies.
Terms that sit next to this one
Put Volume, Call Volume, Open Interest, Options Sentiment