PCR Explained: What the Put-Call Ratio Really Tells You
What the Put-Call Ratio (PCR) is, how it is calculated from option open interest, how to read a PCR above or below 1, and why it is context — not a signal on its own.
The Put-Call Ratio (PCR) is one of the most quoted numbers in options — and one of the most misused. At its core it is a single-figure sentiment gauge, and once you know how it is built you can read it in seconds.
How PCR is calculated
The common version is the OI PCR: total put open interest divided by total call open interest across the chain (or across the strikes near the money).
- PCR > 1 — more puts are open than calls.
- PCR < 1 — more calls are open than puts.
- PCR ≈ 1 — roughly balanced positioning.
How to read it
A rising PCR means put writing is building relative to calls — often read as supportive or bullish positioning, since put writers expect price to hold above their strikes. A falling PCR leans the other way. But the level alone is not a trade: a very high PCR can equally flag a crowded, over-hedged market that is due to unwind. Treat PCR as context that confirms or questions what price is doing — never as a stand-alone buy or sell signal.
OI PCR vs volume PCR
The OI PCR reflects positions still open — the accumulated bets. The volume PCR (today's traded puts ÷ calls) reflects the day's fresh activity and is noisier. Most traders watch the OI PCR for structure and glance at volume for momentum.
See it live
Bullmatics computes PCR for every index in the toolbar of the live option chain, alongside the OI-by-strike chart and the support and resistance walls that give the ratio its context.