Put-Call Ratio (PCR) The Put-Call Ratio, also known as the Put to Call Ratio, is a popular market sentiment indicator in options trading. It is calculated by dividing the trading volume of put options by the trading volume of call options:
PCR = Volume of Put Options/Volume of Call Options
PCR > 1 means Bearish sentiment (more traders expect the market to fall)
PCR < 1 means Bullish sentiment (more traders expect the market to rise)
Traders use the PCR to gauge overall investor fear or greed and spot potential market reversals.