What is a good PC ratio?
Understanding the Put-Call Ratio So, an average put-call ratio of 0.7 for equities is considered a good basis for evaluating sentiment. In general: A rising put-call ratio, or a ratio greater than 0.7 or exceeding 1, means that equity traders are buying more puts than calls.
What is PC in money control?
Put/Call Ratio. The ratio of put trading volume divided by the call trading volume. For example, a put/call ratio of 0.74 means that for every 100 calls bought, 74 puts were bought. It is a contrary indicator. A reading of 1.0 or more is very bullish as most people think the market is going down.
What does PCR ratio indicate?
Definition: Put-call ratio (PCR) is an indicator commonly used to determine the mood of the options market. Being a contrarian indicator, the ratio looks at options buildup, helps traders understand whether a recent fall or rise in the market is excessive and if the time has come to take a contrarian call.
What if PCR is more than 1?
If PCR is above 1, it would mean that more puts are being traded and since more puts are being traded by the retail traders (option buyers) this could mean that markets might do the opposite which is go up. Higher than 1 the PCR is, higher the chances of the market going up.
What is put call ratio of Nifty?
Put Call RatioPCR OIPCR VOLScripPutRatioNIFTY32,068.580.9BANKNIFTY4,395.350.82
What is put call ratio now?
Put Call Ratio Formula – How to Calculate the Put Call Ratio? To calculate Put Call Ratio, you need to divide the total open interest (OI) of Puts by the total open interest of Calls. The calculated value usually ranges from 0.5 to 1.50.
What does low PCR mean?
Low PCR values such as 0.5 and below indicates that there are more calls being bought compared to puts. This suggests that the markets have turned extremely bullish, and therefore sort of overbought. One can look for reversals and expect the markets to go down.
What is PCR in Nifty?
Nifty Put Call Ratio Chart Live. Nifty PCR measures how many put options contracts are open versus call options contracts in the Nifty Option Chain.
Which is better call or put option?
If you are playing for a rise in volatility, then buying a put option is the better choice. However, if you are betting on volatility coming down then selling the call option is a better choice.
What is CE and PE in stock market?
CE and PE in stock market are option trading terms, CE means Call Option and PE means Put Option.
What is Max Pain Nifty?
NIFTY Max Pain | Max pain, or the max pain price for NIFTY, is the strike price with the most open contract puts and calls - and the price at which the stock would cause financial losses for the largest number of option holders at expiration.
What is PCR volume?
PCR (VOL) = volume of put options on a given day/volume of call options on the same given. day.