Put volume divided by call volume for a specific period of time.
This ratio is used by many as a leading indicator. It is computed by dividing the 4-day average of total put VOLUME by the 4-day average of total call VOLUME.
The number of puts traded each day divided by the number of calls traded each day, or the amount of put open interest divided by the amount of call open interest. Such ratios are calculated on individual stocks, indices, or the overall market. Near market lows, the put/call ratio will rise as options traders become excessively worried about downside risk and seek to hedge their portfolios with puts, or speculate on further downside activity. Near market peaks, interest in calls heats up to form a low put/call ratio. The put/call ratio is thus a contrary indicator when it reaches extreme highs or lows.
The ratio of put trading volume divided by the call trading volume. For example, a put/call ratio of 0.74 means that for every 100 calls bought, 74 puts were bought. It is a contrary indicator. A reading of 1.0 or more is very bullish as most people think the market is going down. When the majority thinks the market is going to move a certain direction, it usually does the opposite.
The ratio of put volume divided by call volume. Used as a contrary opinion indicator; a high number means a lot of put buying, therefore bullish, whereas a low number means a lot of call buying is bearish.
Calculated by dividing the number of put options traded by the number of call options traded for a particular asset, the put/call ratio offers Explanation into expectations of the options market. For currency put/call ratio look at the IMM data which comes out every week at the CME website. http://www.cme.com/prices/monthly_volume_action.cfm [Back on Top
The ratio of trading volume in put options to the trading volume in call options. The ratio provides a quantitative measure of the bullishness or bearishness of investors.
