Put call Ratio

Put–Call Ratio (PCR) – Simple Explanation

PCR = Put OI ÷ Call OI

It compares how many PUT options are open vs how many CALL options are open.

It tells you whether the market is:

Fearful
Greedy
Sideways
Overbought
Oversold
📌 PCR Means What? (Human Language)
✅ PCR > 1 (More Puts than Calls)

Market is filled with fear.
Too many people are buying/writing PUTs.

Meaning:
Market is likely oversold → can bounce UP.

Sentiment: Bullish reversal
Example: PCR = 1.30

✅ PCR < 1 (More Calls than Puts)

Market is filled with greed.
Too many people are buying/writing CALLs.

Meaning:
Market is likely overbought → can come DOWN.

Sentiment: Bearish reversal
Example: PCR = 0.70

✅ PCR Around 1

Market is balanced / sideways.

No strong buying or selling pressure.