How to Use Put Call Ratio
Interpret the put/call ratio for sentiment and risk management.
The put/call ratio contrasts bearish and bullish options activity to infer sentiment extremes.
Key Insights
Point 1
Use moving averages to smooth noisy data
Point 2
Context matters: spikes differ in uptrends vs downtrends
Point 3
Best as a filter, not a standalone trigger
Practical Applications
Watch for divergences at key market levels
Combine with VIX structure and breadth thrusts
Size positions smaller around sentiment extremes
Related Market Indicators
This information is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. See full Disclaimer.
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