Put call ratio (PCR)
PCR compares put activity with call activity. It is a mood gauge with conflicting readings, not a signal.
Calculation
PCR (OI) = total put open interest divided by total call open interest. PCR (volume) uses traded volume instead. Above 1 means more put open interest than call; below 1 means the reverse.
Why readings conflict
Some read a high PCR as bearish (many puts bought), others as bullish (many puts written as support). The same number supports both stories, because open interest does not tell you who is buying or selling.
Using it carefully
Treat PCR as one descriptive input next to IV and expected move. Compare it with the same instrument's own history, and keep in mind we found no reliable directional edge in the signals we tested.
Related tools and reports
Educational content, not investment advice. F&O trading can lose more than you put in.