What is Put/call ratio?
What Is the Put/Call Ratio?
Updated 2026-07-22
Quick answer
Put/call ratio compares put activity to call activity by contracts, volume, or premium. Context decides whether heavy puts mean hedges or bearish bets.
Also called: PCR, put call ratio, call put ratio, C/P ratio.
Visual explainer
Put vs call participation is best read as premium share. TradingFlow KPI cards show call/put flow percentages.
Full definition
PCR can be built from contracts, volume, or premium dollars. Premium-weighted views usually answer “where is money printing?” better. Extremes can be contrarian or trend-confirming depending on regime. On Option Trades, call/put flow shares and bullish/bearish premium give a session tilt without a single opaque PCR formula.
How it shows up in TradingFlow
- Option Trades KPI cards
Call Flow % and Put Flow % of premium for the visible dataset, plus bullish/bearish shares.
How to read it
- Start with call vs put premium share on the KPI strip.
- Filter to a watchlist or asset type before treating PCR as “the market.”
- Cross-check with walls/GEX so sentiment is not tape-only.
Who this is for
Traders who want a fast read on call versus put participation in the session.
Common mistakes
- Using equity-only PCR for pure index 0DTE decisions without filters.
- Ignoring that puts are often hedges, not pure shorts.
Frequently asked questions
- Is higher put/call always bearish?
- Heavy put buying can be protection against long stock. Read side, strike, and whether premium is aggressive.
Related terms
- Option flowOption flow is the time-and-sales stream of options prints: contract, size, premium, and inferred aggressor side.
- Unusual options activity (UOA)UOA flags contracts or underlyings trading far above recent norms in volume, size, or premium. It is an attention screen, not a directional signal.
- Smart money flowIn scanners, “smart money” usually means large or institutional-style prints. It is a size heuristic, not account identity.
- Gamma exposure (GEX)GEX estimates aggregate dealer gamma from listed options. Positive gamma tends to dampen moves; negative gamma tends to amplify them. Option gamma is the building block; a gamma squeeze is a feedback loop when short-gamma hedges chase price higher.
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