option-chain pcrA PCR above 0.7 or 1 reflects increased put option purchases, indicating bearish sentiment as investors hedge against potential sell-offs or speculate on falling prices. A PCR below 0.7, especially closer to 0.5, signals bullish sentiment, suggesting optimism for market gains.
No PCR is considered ideal, but a PCR below 0.7 is typically viewed as a strong bullish sentiment while a PCR above 1 is typically viewed as a strong bearish sentiment.
