Put/call ratio
Put activity divided by call activity — a gauge of how much protection is being bought.
Formula
P/C = Put open interest (or volume) ÷ Call open interest (or volume)
How to read it
Above 1 means more puts than calls. Extremes are often read contrarily: heavy put buying tends to come near lows.
How to use it
A sentiment gauge, usually read at its extremes.
Limitations
Hedging and spread trades blur its meaning.
In Kereon
Options. Summed over the contracts quoted at the expiry. On open interest it describes positions held; on volume, today's activity.
Also called: p/c, put/call, put / call, put/call ratio, p/c (oi), p/c (volume), put / call, open interest, put / call, volume.