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Positioning & Flow

Put/Call Ratio

Also called: PCR, put-call ratio

The put/call ratio divides put volume (or put open interest) by call volume (or call open interest). Readings above 1 indicate more put than call activity and are read as bearish or hedged positioning; readings well below 1 as bullish.

The ratio is tracked for single names, for the whole equity market, and for index products, where structural hedging keeps it higher. Extremes are often read contrarian: a spike in put buying can mark fear near a low, and a very low ratio can mark complacency.

Volume-based ratios capture today's sentiment; open-interest-based ratios capture accumulated positioning. Premium-weighted versions give more weight to large trades and less to cheap lottery tickets.

Formula

Put/Call ratio = put volume / call volume (or put OI / call OI)

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Frequently asked questions

What is a normal put/call ratio?

For single stocks roughly 0.6–0.8 on volume; for index products often above 1, because institutions buy index puts as portfolio insurance. Compare each series with its own history rather than a universal threshold.