• Latest
  • Trending
  • All
  • News
  • Business
  • Politics
  • Science
  • World
  • Lifestyle
  • Tech
Learn How to Analyze Put Call Ratio

Learn How to Analyze Put Call Ratio

November 25, 2021
Get to Know More About Different Mdf Board Colors

Get to Know More About Different Mdf Board Colors

May 25, 2022
Key Factors About Sunflower oil extraction machine in Kenya

Key Factors About Sunflower oil extraction machine in Kenya

May 25, 2022
All you need to know about single phase posho mill

All you need to know about single phase posho mill

May 25, 2022
How to Deal With Increased Debt Incurred During the Pandemic?

How to Deal With Increased Debt Incurred During the Pandemic?

May 25, 2022
KuCoin Review – A Closer Look at KuCoin

KuCoin Review – A Closer Look at KuCoin

May 25, 2022
Tips And Tricks To Help You Choose Best Cfd Broker UK?

Tips And Tricks To Help You Choose Best Cfd Broker UK?

May 25, 2022
7 Things to Consider When Buying a Vacuum Cleaner For Your Home

7 Things to Consider When Buying a Vacuum Cleaner For Your Home

May 25, 2022
Important Aspects of a Digital Weighing Scale

Important Aspects of a Digital Weighing Scale

May 25, 2022
Most Common Questions People Ask About Shade Nets

Most Common Questions People Ask About Shade Nets

May 25, 2022
Decommissioning Data Center Equipment– Audit Compliance Process

Decommissioning Data Center Equipment– Audit Compliance Process

May 25, 2022
Best PDF Annotation Apps for Workflow

Best PDF Annotation Apps for Workflow

May 25, 2022
Heart-Melting Raksha Bandhan Gifts For Your Brother

Heart-Melting Raksha Bandhan Gifts For Your Brother

May 24, 2022
Visitmagazines
  • Home
  • Business
  • News
    • All
    • Politics
    • Science
    • World
    How to Deal With Increased Debt Incurred During the Pandemic?

    How to Deal With Increased Debt Incurred During the Pandemic?

    KuCoin Review – A Closer Look at KuCoin

    KuCoin Review – A Closer Look at KuCoin

    Tips And Tricks To Help You Choose Best Cfd Broker UK?

    Tips And Tricks To Help You Choose Best Cfd Broker UK?

    Most Common Questions People Ask About Shade Nets

    Most Common Questions People Ask About Shade Nets

    The future decentralized crypto platform KuCoin

    The future decentralized crypto platform KuCoin

    Productivity Tips For Those Who Are Self Employed

    Productivity Tips For Those Who Are Self Employed

    6 Must-Have Items Every 4×4 Driver Needs to Have in Their Tool Kit

    6 Must-Have Items Every 4×4 Driver Needs to Have in Their Tool Kit

    Online MOT Due Date Checker

    Online MOT Due Date Checker

    How To Avoid The Most Common Tanning Mistakes And Get The Best Tan

    How To Avoid The Most Common Tanning Mistakes And Get The Best Tan

    Connection of Kundli and Vastu in astrology

    Connection of Kundli and Vastu in astrology

    Trending Tags

    • Donald Trump
    • Future of News
    • Climate Change
    • Market Stories
    • Election Results
    • Flat Earth
  • Entertainment
    • All
    • Gaming
    • Movie
    • Music
    Playing laser tag

    Playing laser tag

    Best Tips To Buy Zorb Ball

    Best Tips To Buy Zorb Ball

    Best Free Movie Streaming Sites

    Best Free Movie Streaming Sites

    CuriosityStream

    CuriosityStream

    How to Spot an Exceptional Employee?

    How to Spot an Exceptional Employee?

    Best Ninja Boys and Girls Cosplay Costumes

    Best Ninja Boys and Girls Cosplay Costumes

    Christmas therapy: How singing the best holiday songs can save your life

    Christmas therapy: How singing the best holiday songs can save your life

    Top 10 Health Benefits Of Attending A Live Stand Up Comedy Club

    Top 10 Health Benefits Of Attending A Live Stand Up Comedy Club

    How Artist David Pham is Disrupting the Music Industry?

    How Artist David Pham is Disrupting the Music Industry?

    Movierulz4 telugu movies download | Movierulz4 kannada movie | Everything to Know About Movierulz4 Watching and Downloading Online Pirated Website

    Movierulz4 telugu movies download | Movierulz4 kannada movie | Everything to Know About Movierulz4 Watching and Downloading Online Pirated Website

  • Lifestyle
    • All
    • Fashion
    Heart-Melting Raksha Bandhan Gifts For Your Brother

    Heart-Melting Raksha Bandhan Gifts For Your Brother

    Classic Wedding Theme for a Safe and Healthy Celebration

    Classic Wedding Theme for a Safe and Healthy Celebration

    What is the History of the Courier Bag?

    What is the History of the Courier Bag?

    Types Of Hair Accessories That You Can Try This Summer

    Types Of Hair Accessories That You Can Try This Summer

    A Fool-proof Guide To Sell A Business In 3 Steps

    A Fool-proof Guide To Sell A Business In 3 Steps

    Laminate or Engineered Floorboards: What’s the Difference?

    Laminate or Engineered Floorboards: What’s the Difference?

    Does fashion rule the world?

    Does fashion rule the world?

    Wholesale Clothing Vendors to Find the Best Deals Online

    Wholesale Clothing Vendors to Find the Best Deals Online

    Useful Tips When Shopping For Colored Jeans For Women

    Useful Tips When Shopping For Colored Jeans For Women

    The islamic talisman for love

    The islamic talisman for love

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Technology
  • Legal
    • Law
No Result
View All Result
Visitmagazines
No Result
View All Result
Home Technology

Learn How to Analyze Put Call Ratio

by Paloma Gonzalo
in Technology
0
Learn How to Analyze Put Call Ratio
500
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

The Put-Call Ratio serves as an indicator to know how the Stock Market is behaving. To understand the Put-Call ratio in detail, you must first be clear about Put Options and Call Options.

Put Option

A put option (put) refers to a financial market derivative instrument that allows the holder to sell at a predetermined price before or at a predetermined date without any obligation. You can trade on various underlying assets such as Stocks, Currencies, Commodities, Futures, Bonds, and Indexes in a put option. The change in the put option price depends on the underlying asset’s price, the option strike price, interest rates, volatility, etc. An increase in the put option value means a decrease in the underlying asset price. In contrast, a reduction in the put option value indicates an increase in the underlying asset price.

Call Option

A call option is also a financial market derivative instrument that allows you to buy an asset from the seller at a predetermined price or strike price within a predetermined time without any obligation. The buyer will have to pay a premium for buying this right. When the underlying asset falls down the strike price at the expiration date, the call buyer will lose their paid premium. A call buyer makes profits when the underlying asset price goes up.

Put-Call Ratio

The number of traded put options is divided by the number of traded call options to determine the put-call ratio.

The criteria for judging are –

PCR>1

PCR>1 means PCR is greater than one. It is a situation where more Puts are purchased than Calls, suggesting there is bearish sentiment in the market. Investors speculate about the market moving lower.

PCR<1

PCR<1 means PCR is lesser than 1. It is a situation where more Calls are purchased than Puts, indicating the bullish sentiment in the market. Investors speculate about the market going up.

PCR=1

PCR=1 means PCR is equal to 1. It is a situation where an equal number of Calls and Puts are purchased, indicating stability or neutrality in the market as there is neither bearish nor bullish sentiment. There is the same amount of speculation about the market going up and falling. It could happen in times of uncertainty.

No PCR

It is an ideal market when there is no PCR. However, when PCR is below 0.7, there will be a strong bullish sentiment, while when PCR is above 1, there will be a strong bearish sentiment.

There are also the concepts of PCR Volume and PCR (OI)

To calculate PCR Volume, you need to divide the volume of put options with the volume of call options for a single day. At the same time, PCR OI stands for the Put-Call Open Interest Ratio. To calculate PCR OI, you will have to divide the total open interest of puts by the total open interest of calls.

Takeaway

Put-Call Ratio (PCR) is a helpful indicator for investing in the Stock Market. Based on PCR, you can decide whether to buy shares to get good returns in the future or sell your shares and be ready for a market crash.

Share200Tweet125Share50
Previous Post

Why Play Baccarat on the Web

Next Post

Enjoy Benefits of Credit Card – How Credit Card is So Flexible?

Paloma Gonzalo

Paloma Gonzalo

Next Post
Enjoy Benefits of Credit Card – How Credit Card is So Flexible?

Enjoy Benefits of Credit Card – How Credit Card is So Flexible?

  • Trending
  • Comments
  • Latest
khatrimaza | khatrimazafull| Okhatrimaza is an Indian website – why is it banned?

khatrimaza | khatrimazafull| Okhatrimaza is an Indian website – why is it banned?

March 14, 2022
Get the New Experience of Beer Tasting withWorld of Beer Tampa Bay, Florida

Get the New Experience of Beer Tasting withWorld of Beer Tampa Bay, Florida

May 17, 2022
สูตรแทงบอล SBOBET(SBOBET Football Betting Formula) and Strategy

สูตรแทงบอล SBOBET(SBOBET Football Betting Formula) and Strategy

April 27, 2021
Khatrimaza cool | Khatrimaza full | Khatrimaza pro – Watch the latest videos, photos, and news on Khatrimaza.

Khatrimaza cool | Khatrimaza full | Khatrimaza pro – Watch the latest videos, photos, and news on Khatrimaza.

0
khatrimaza | khatrimazafull| Okhatrimaza is an Indian website – why is it banned?

khatrimaza | khatrimazafull| Okhatrimaza is an Indian website – why is it banned?

0
7starhd win | 7starhd loan | 7starhd fans | 7starhd bv: Download Hindi, Tamil, Bollywood, Hollywood Best Movies for Free & Enjoy the Movies

7starhd win | 7starhd loan | 7starhd fans | 7starhd bv: Download Hindi, Tamil, Bollywood, Hollywood Best Movies for Free & Enjoy the Movies

0
Get to Know More About Different Mdf Board Colors

Get to Know More About Different Mdf Board Colors

May 25, 2022
Key Factors About Sunflower oil extraction machine in Kenya

Key Factors About Sunflower oil extraction machine in Kenya

May 25, 2022
All you need to know about single phase posho mill

All you need to know about single phase posho mill

May 25, 2022

Copyright © 2021 Visitmagazines.com

  • Privacy Policy
  • Contact us

Follow Us

No Result
View All Result
  • Home
  • News
    • Politics
    • Business
    • World
    • Science
  • Entertainment
    • Gaming
    • Music
    • Movie
    • Sports
  • Tech
    • Apps
    • Gear
    • Mobile
    • Startup
  • Lifestyle
    • Food
    • Fashion
    • Health
    • Travel

Copyright © 2021 Visitmagazines.com

Cleantalk Pixel