Call put ratio SAB
Let’s see how PCR analysis can be interpreted taking option sellers into consideration who are the major players in the market as compared to the retail public who are usually on the buying side of the trade.
Put / Call Ratio Interpretation
If put-call ratio increases as minor dips getting bought in during an up trending market Bullish Indication. It means the put writers are aggressively writing at dips expecting the uptrend to continue
If put-call ratio decreases while markets testing the resistance levels Bearish Indication. It means call writers are building fresh positions, expecting a limited upside or a correction in the market.
If put-call ratio decreases during down trending market Bearish indication. It means option writers are aggressively selling the call option strikes.
Let’s see how PCR analysis can be interpreted taking option sellers into consideration who are the major players in the market as compared to the retail public who are usually on the buying side of the trade.
Put / Call Ratio Interpretation
If put-call ratio increases as minor dips getting bought in during an up trending market Bullish Indication. It means the put writers are aggressively writing at dips expecting the uptrend to continue
If put-call ratio decreases while markets testing the resistance levels Bearish Indication. It means call writers are building fresh positions, expecting a limited upside or a correction in the market.
If put-call ratio decreases during down trending market Bearish indication. It means option writers are aggressively selling the call option strikes.