PCR (OI) = Put open interest on a given day/Call open interest on the same day One way to calculate PCR is by dividing the number of open interest in a Put contract by the number of open interest in Call option at the same strike price and expiry date on any given day. The ratio is calculated either on the basis of options trading volumes or on the basis of options contracts on a given day or period. 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. Definition: Put-call ratio (PCR) is an indicator commonly used to determine the mood of the options market.
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