Put/Call Ratio

#1
Hello,
Put/Call ratio or P/C ratio seems to be the ratio of the open put positions to the open call positions. We also know that options trading is permitted on ~225 scrips. But MoneyControl displays the P/C of all scrips,including those which do not trade in F&O markets, e.g. SBBJ, and Gravita India. Could someone enlighten us on how the P/C value is calculated?
 

anup0212

Well-Known Member
#2
from time to time this lists keep on updating ....
 

columbus

Well-Known Member
#4
Hi Dan,

Personally I think PCR before expiry gives somewhat misleading information
just either PUT or CALL volumes tend to have be HIGH in opposite direction since
they have PENNY value.( OTM puts have great volumes if market is in UP move
vice versa).So it is better to consider VALUE TRADED instead of VOLUME TRADED.
 

DanPickUp

Well-Known Member
#5
Hi Columbus

As you and I know, every indicator which is used only on short time frames: Some times it works and other times it is useless. A chance of 50 / 50 if used as alone indicator.

What I have observed is to use this indicator not directly before expiry. Having a look at it a few days before expiry has improved my way of looking at market direction. As I do not trade your market you have to check this way of trading in your market.

DanPickUp
 

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