What is put to call ratio and how does it work?

Put to call ratio is nothing but a derivative indicator which will be greatly useful for the traders who will want to know about how the whole market sentiment is going on at the moment. The value available in the chart for the specific day is the ratio of volume on the put versus call options. It is not just the indicator for knowing about the whole sentiment for index but also for stock as well as for the whole stock market too. Do check out Zigz.io to know the value of this ratio for the day or moment based on your choice.


Read this article completely to know more about this ratio and how does it work among all the other index and indicator values of the market. They are as follows,

  • When the value of this ratio is 0.7, then it would be the right situation to find the sentiment of the whole market very easily. When the value of the same is either 7 or more than 1, then it means that the buyers of the market are buying more puts than calls. When all these situations happen in the market, then it indirectly indicates that the bearish market is getting built up and is going to prevail for some period of time until the reverse market sets in.
  • It is also called as one of the reliable indicators among the other ones. When you are in search for the place where you could get the exact accurate value of the ratio for today, then picking io would be one of the best choices that any trader that has interest in stocks and other could definitely do. Learn about the same and trade accordingly to earn profits and reduce losses.