Put Call Ratio Calculator
Calculate the put-call ratio by volume and by open interest to gauge options market sentiment, with the contrarian thresholds explained.
Put Call Ratio Calculator
Calculator
Adjust values & calculateEnter your values below. Every result is computed in your browser — no data is sent to any server.
Formula: PCR (Volume) = Put Volume / Call Volume | PCR (OI) = Put OI / Call OI
Worked example — PCR 1.25 — Very Bearish (contrarian: potential bottom)
Formula
PCR (Volume) = Put Volume / Call Volume | PCR (OI) = Put OI / Call OI
Put-Call Ratio measures market sentiment. PCR > 1 = bearish sentiment (more puts), PCR < 1 = bullish sentiment (more calls). Contrarian view: extremely high PCR (>1.2) may signal a bottom; extremely low PCR (<0.7) may signal a top.
Worked Examples
Example 1: Bearish Extreme Reading
Problem:Put Vol: 500K, Call Vol: 400K, Put OI: 2M, Call OI: 1.8M
Solution:PCR Vol = 500K/400K = 1.25. PCR OI = 2M/1.8M = 1.11
Result:PCR 1.25 — Very Bearish (contrarian: potential bottom)
Example 2: Bullish Complacent Reading
Problem:Put Vol: 180K, Call Vol: 400K, Put OI: 900K, Call OI: 1.5M
Solution:PCR Vol = 180K/400K = 0.45. PCR OI = 900K/1.5M = 0.60
Result:PCR 0.45 — Very Bullish (contrarian: potential top)
Frequently Asked Questions
What is a good put-call ratio?
Typically, PCR between 0.7-1.0 is considered normal. Above 1.0 indicates bearish sentiment. Below 0.7 is bullish. As a contrarian indicator, extreme readings often precede reversals.
Volume PCR vs OI PCR?
Volume PCR reflects current day trading activity. OI (Open Interest) PCR reflects cumulative positions and is a better indicator of sustained sentiment.
How do traders use put-call ratio as a contrarian indicator?
Contrarian traders treat extreme PCR readings as signals of market over-extension. When PCR rises above 1.2–1.5, fear is dominating and the majority are buying puts — historically a buying opportunity, not a time to sell. Conversely, a PCR below 0.5 suggests excessive complacency and heavy call buying, which often precedes corrections. Contrarian signals work best when confirmed by price action or other technical indicators.
Does put-call ratio work the same way for individual stocks and broad market indices?
No. Index options are heavily used for portfolio hedging by institutional investors, and that hedging demand is a persistent bid for puts that has nothing to do with a directional view, so an index ratio sits structurally above a single-stock ratio, where directional speculation dominates and call buying is more common. The gap between the two is a property of who trades each product, not a fixed number, and it shifts with volatility and with how expensive protection is at the time. Because of that, a level that counts as extreme on an index would be unremarkable on a single stock and vice versa. Judge any symbol against its own historical range — the percentile of today's reading within the last year of that same series — rather than against a universal threshold or against a different instrument's typical band.
What is the difference between the equity put-call ratio and the total put-call ratio?
The equity PCR counts only single-stock options, which are dominated by directional speculation, so it usually runs below 1.0. The total PCR adds index and ETF options, where institutions buy puts as portfolio insurance rather than as bearish bets, pushing the ratio structurally higher. Because those hedging flows never reverse into buying pressure, mixing the two series blurs the sentiment signal. Track whichever series matches the instrument you are trading.
Why do traders smooth the put-call ratio with a moving average?
A single session's volume can be distorted by one large block trade, an earnings hedge or a roll, so the raw daily ratio is noisy. Applying a 5-day, 10-day or 21-day moving average filters that noise and leaves the underlying drift in positioning. Smoothing also makes extremes comparable: a 10-day average sitting at the top of its own one-year range is a far stronger contrarian reading than one spiky day above 1.2.
How does open interest actually change when a put contract trades?
Open interest counts contracts still outstanding, so it rises only when a buyer opening a new long position is matched with a seller opening a new short. If the buyer is closing an existing short, or the seller is closing an existing long, open interest stays flat or falls even though volume was recorded. That is why the OI-based ratio moves slowly and reflects positions carried overnight, while the volume ratio reacts to intraday churn.
When does a rising put-call ratio confirm a downtrend instead of signalling a reversal?
Shape matters more than level. A slow, persistent climb in the ratio alongside lower highs and lower lows usually reflects steady hedging demand and confirms the trend rather than opposing it. A vertical spike to a multi-month extreme in one or two sessions is the panic profile contrarians look for. Wait for the ratio to roll over from its extreme while price stops making new lows before treating it as a reversal cue.
What is a dollar-weighted put-call ratio and when is it more useful?
Instead of dividing contract counts, a dollar-weighted ratio divides total put premium by total call premium. Cheap far out-of-the-money contracts then carry little weight, while expensive near-the-money hedges carry a lot. This matters when speculation concentrates in low-priced lottery-ticket calls: contract counts make sentiment look wildly bullish while the premium actually committed tells a calmer story. Use the premium version when you care about capital at risk rather than ticket count.
How does expiration week distort the put-call ratio?
Around expiration much of the recorded volume is closing and rolling activity rather than fresh sentiment. Traders unwind expiring hedges and re-establish them in a later cycle, inflating both put and call volume without any change in conviction. Open interest also collapses as expiring series drop off, which can jerk the OI ratio sharply. Compare the reading with the same point in previous expiration cycles, or wait a session or two after expiry, before drawing conclusions.
References
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer · Editorial policy
Related Calculators
🧮Risk Reward Ratio Calculator
Calculate risk reward ratio with inputs, formulas, and instant results.
🧮Margin Call Calculator
Calculate margin call with inputs, formulas, and instant results.
🧮Price to Book Ratio Calculator
Calculate P/B ratio from market cap and book value to assess stock valuation.
🧮Dividend Payout Ratio Calculator
Calculate what percentage of earnings a company pays out as dividends.
🧮Account Growth Calculator
Project your trading account growth over time given win rate, RR ratio, and risk per trade.
🧮Pip Calculator
Calculate pip with inputs, formulas, and instant results.
🧮Forex Margin Calculator
Calculate forex margin with inputs, formulas, and instant results.
🧮Forex Profit Calculator
Calculate forex profit with inputs, formulas, and instant results.