PCR Option TradingWhat is a good PCR ratio? A good PCR ratio depends on the market context, but generally, a PCR below 0.7 indicates bullish sentiment (potential market rise), while a PCR above 1.2 suggests bearish sentiment (potential market decline).
The PCR ratio can be interpreted in the following ways: PCR < 1: When the PCR is less than 1, it indicates that there are more open call contracts than put contracts, which can be seen as a bullish sentiment in the market. Traders and investors expect the underlying asset's price to rise.
