Put Call Ratio

What Is The Put/Call Ratio?

How To Get The Put/Call Ratio

Put/Call Ratio Rule

• The put/call ratio is a little unreliable the first five to ten minutes of the trading day. The put/call ratio has a staggered open on options

Put/Call Ratio Basics

• The put/call ratio is below .45 means it is severely negative
• The put/call ratio is between .45 and .65 means it is negative, but not extremely negative
• The put/call ratio is between .65 and .75 means it is slightly negative
• The put/call ratio is between .70 and .85 is considered neutral. The put/call ratio between .70 and .85 means the market action and the prices of the Dow and s&P can go up or down equally as easy
• The put/call ratio is between .85 and .95 is bullish, but moderate
• The put/call ratio is above 1.0 means it is extremely bullish. If the The put/call ratio goes above 1.0, I look to go long

Put/Call Ratio Rule Of Thumb

The main way I use put/call ratio is to make sure there is nothing out of whack in the trading market. The put/call ratio is like a tourniquet. If you are bleeding and you apply it correctly, you will survive. If the put/call ratio get above 1.0 when the market is selling off, it will hold. If put/call ratio is not, it will just slow down the bleeding.

Put/Call ratio video will explain this further.