Put-Call Ratio Explained

Compare put-call ratios by dataset and timeframe without treating one ratio as a trading signal.

Put-Call Ratio Explained is a 4-page PDF field guide. Equity and index ratios, sentiment context and interpretation limits.

• Define the numerator: A volume ratio and an open-interest ratio answer different questions.

• Separate product groups: Index puts may reflect portfolio hedging while single-stock activity may have different drivers.

• Avoid fixed thresholds: A historically high reading depends on the series, lookback and current market regime.

• Sentiment is not timing: Contrarian readings can persist and do not specify an entry or exit.

Action checklist: Name the exact ratio series; Record calculation window; Separate equity and index options; Compare with its own history; Check volatility and trend context; Avoid converting one ratio into a trade signal.

Aggregate ratios do not reveal every participant's intent and are not standalone signals.