can anybody explain what is PCR in options? hot to use it?

[mmohanar]

can anybody explain what is PCR in options? how to use it?

Can anybody explain what is PCR in options? and how to use it? importance of the PCR oi wise and volume wise?

I know little bit.but I need explanation by options experts

Thanks in advance

Mmohanar

 

[mmohanar]

Re: can anybody explain what is PCR in options? how to use it?

PCR means put call ratio.it is reliable indicator.every option trader must know that.it gives future direction of the market.I know little bit but if somebody explain it deeply I will thankful to them. anybody?.

Regards

Mmohanar

 

[mohan.sic]

PCR means put call ratio.it is reliable indicator.every option trader must know that.I know little bit but if somebody explain it deeply I will thankful to them anybody?.

Regards

Mmohanar

PCR you want to know it from intraday point of view or positional.

generally we speak on it positionally.
but from positional point of view, pcr on OI is discussed in general.
pcr on volumes are not discussed as volumes are day waise and not carried forward. Ofcourse, OI is part of volume traded but comparitive number of OI to total volume will be very less. So if you want pcr on volumes ( for positional analysis) you have to do it manually by adding every day calls and puts volumes.

There is no need to rely on this pcr on oi when you look at it from conventional approach, but observation over a period of time will give you some clues of market action...