Put-Call Ratio

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Dictionary Says

Definition of 'Put-Call Ratio'

A ratio of the trading volume of put options to call options. It is used to gauge investor sentiment.
Investopedia Says

Investopedia explains 'Put-Call Ratio'

For example, a high volume of puts compared to calls indicates a bearish sentiment in the market.

Related Definitions

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    Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.
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  • Option

    A financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to ...
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  • Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time. This is the ...
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    • Market Sentiment

      The feeling or tone of a market (i.e. crowd psychology). It is shown by the activity and price movement of securities.
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    • Bear

      An investor who believes that a particular security or market is headed downward. Bears attempt to profit from a decline in prices. Bears are generally pessimistic about the state of a ...
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    • Bull

      An investor who thinks the market, a specific security or an industry will rise. Investors who takes a bull approach will purchase securities under the assumption that they can be sold ...
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    • ISEE Sentiment Indicator

      A measure of investor sentiment in the market measured by looking at the number of opening long call options to opening long put options purchased on the International Stock Exchange. ...
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