Put Call Ratio
Options Trading
Definition
The ratio of put options trading volume to call options trading volume, used as a contrarian sentiment indicator where high ratios suggest bearish sentiment and potential market bottoms.
Key Points
- Calculated as put volume divided by call volume
- High ratios (>1.0) indicate bearish sentiment
- Often used as contrarian indicator
Quick Info
Category
Options Trading
Related Topics
options sentiment
put options
call options
contrarian indicator
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