Ads end in 20 seconds
This content is free thanks to our sponsors
Sponsored Ad – I may earn a commission if you click and buy
Investment
Put-Call Ratio
The number of put options traded divided by the number of call options traded — used as a sentiment indicator.
The put-call ratio is a contrarian indicator. Extreme readings often signal market turning points. It is widely watched for the S&P 500 and individual stocks.
It's a fear/greed thermometer for the options market.
Real world: When the put-call ratio is very high (lots of puts being bought), it often means traders are scared and the market may be near a bottom. When it is very low, traders are greedy and a top may be near.
💡 A sky-high put-call ratio is often a bullish signal — fear is at its peak.