Articles in this section

What is the put/call ratio?

The put/call ratio is an important indicator of market sentiment and the possible future direction of the market. It is calculated by dividing total number of put options traded over a particular security and dividing it by the number of calls traded over the same security.

A ratio over one means that more puts than calls have traded during the day, possibly indicating a bearish market for the underlying security and its options. A ratio under one means that calls are more popular than puts, potentially indicating a bullish market.

This ratio is updated live as trades occur during the day. A second ratio, the put/call OI ratio, is also calculated at the end of each trading day, using the open interest for puts and calls over the security. You can view both ratios by searching for an underlying security on the ETO page.

Was this article helpful?
0 out of 0 found this helpful

More Resources

  • What you get with Bell Direct

    Find out what we can offer you when you become a client with Bell Direct

  • Our helpline hours

    8am - 7pm Monday to Friday (Australian Eastern Standard Time) 1300 786 199 (within Australia) +61 3 8663 2700 (international)

  • Follow us on LinkedIn

    Get the latest updates on the ASX and more!