Put Call Ratio Calculator

Compute the Put-Call Ratio (PCR) based on trading volumes or open interest to analyze stock market sentiment.

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Calculation Parameters

Specify your inputs below.

Calculated Result

Put-Call Ratio (PCR) 0.90
Market Sentiment Neutral / Slightly Bullish
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Expert Tip

A high PCR (e.g. above 1.0) indicates bearish sentiment as investors buy more puts. Below 0.7 suggests bullish sentiment.

How this Calculator Works

Divides the put options volume by the call options volume to identify market bias indicators.

Formula & Methodology

PCR = Put Volume / Call Volume

Step-by-Step Calculation Example

Here is a step-by-step example showing how the calculations are performed:

If Put Volume = 45,000 and Call Volume = 50,000: - PCR = 45,000 / 50,000 = 0.90 (Neutral)

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Detailed Insights & Expert Guide

โ„น๏ธ About this Calculation

This derivatives and options pricing calculator evaluates theoretical option premiums, implied volatility (IV), option Greeks (Delta, Gamma, Theta, Vega, Rho), multi-leg strategy risk profiles, and futures margin requirements using Black-Scholes and Cox-Ross-Rubinstein binomial models.

Variable Glossary

Input

Option Parameters

Underlying stock price (S), strike price (K), expiration days (T), volatility (ฯƒ %), and risk-free interest rate (r %).

Parameter

Greeks & Premium

Theoretical Call/Put price ($), Delta sensitivity (ฮ”), Theta daily decay (ฮ˜), and maximum profit/loss boundaries.

How to Calculate Step-by-Step

1

Step 1

Input current asset price, option contract strike price, and target expiration date.

2

Step 2

Specify implied or historical volatility percentage, dividend yield %, and risk-free treasury yield.

3

Step 3

Review calculated fair value option price, Greek risk sensitivities, break-even stock price, and payoff diagram matrix.

FAQ

What are the primary Option Greeks and what do they measure?
Delta (ฮ”) measures price sensitivity to underlying asset moves; Gamma (ฮ“) measures rate of Delta change; Theta (ฮ˜) measures daily time decay; Vega (ฮฝ) measures sensitivity to 1% volatility changes.
What is Put-Call Parity?
Put-Call Parity defines the static equilibrium relationship: Call Price - Put Price = Spot Price - Present Value of Strike Price. It prevents arbitrage between options and European spot markets.
Can option pricing models guarantee trading profits?
No. Black-Scholes and Binomial models assume continuous trading, constant volatility, and lognormal price distributions. Options trading involves substantial risk of capital loss due to leverage and volatility expansion.