We are only conducting Seminars to make Professional Traders. Join Now for Hyderabad and Chennai Seminar.

How to Use Put Call Ratio to Make Money in Market?

Market has given us ample tools to analyse the market but remember that these tools have to be used in correlation with other technical analysis tools to arrive at the correct picture.

One such tool is put call ratio which indicates the prevalent trend in the market for an index or a stock.

Remember to use the same in correlation with the tools specified in the procedure to become a technical analysis here.

Put-call ratio (PCR)

Put-call ratio (PCR) is computed by dividing the number of puts (contracts) by the number of calls (contracts). Since the strike price of options is exchange-determined, the number of calls is indicative of buying interest and puts the selling interest.

  • If calls are more than puts, the market is bullish, and the PCR is less than 1. 
  • As the markets move down, PCR increases, indicating bearishness.
  • PCR is used as a contrarian indicator by traders, when it trades at extreme values. 

How to use Put call ratio to make money in market?

PCR close to 0.9 or more indicates a very high level of bearishness, and traders may be willing to take contrarian bets that the market would bottom out. Very low PCR at 0.6 or less indicates a high level of bullishness and can be interpreted as an overbought market.

Most Visited Stocks - Click to Visit Link


"First off all, I just want to say that your service is excellent – by far the best tips service I have encountered and quality of your Jackpot tips is really good and noticed that now I am getting daily profit. I can say that it makes a difference to choose the correct tips provider and it was my luck that I stumbled on your website."

- Rajesh


We Compliment you for becoming a part of mega family of more than 12 Lakh Smart Traders who are getting benefitted with our services worldwide. We assure You that we will deliver more than what we promise. Do remember to leave questions and Feedback. Your Success is Guaranteed with us!

You can Contact us through Contact Box provided on website or Email at info@indian-share-tips.com. You can make Online Payment through Payment Gateway installed on the website as we offer you the highest standard of security currently available on the Net so as to ensure that your online transaction is Private, Safe and Secure.

We Teach and Train our Clients as we want to make sure that clients trade in market as a thorough professional. Charges if any being paid by you are for the teaching and training. We do not provide any stock tips. Your joining is subject to acceptance of our terms and Disclaimer for which link is given on the site at bottom right hand corner. Wherever the word tip is written; it implies an idea which is of informational value and is not suitable for trading. Trade ideas if any are for educational purpose only. We are conducting Seminars to make Professional Traders. Join Now for Bangalore, Chennai and Hyderabad. Leave query through contact form.
Chart> Nifty A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 0-9