PCR Analysis: The Sentiment Meter

Put Call Ratio (PCR) summarizes the entire Option Chain into a single number.

Formula

PCR = Total Put OI / Total Call OI

Interpretation

  • PCR > 1.5

    Overbought: Too many Puts sold. Market is euphoric. Expect a dip.

  • PCR 1.0 - 1.3

    Bullish: Healthy uptrend support.

  • PCR 0.7 - 1.0

    Neutral / Bearish: Slightly bearish bias.

  • PCR < 0.6

    Oversold: Too many Calls sold. Market is fearful. Expect a bounce.

Pro Tip: Don't just look at absolute PCR. Look at the change in PCR. If PCR rises from 0.8 to 1.1 during the day, sentiment is shifting Bullish.
Last Updated: January 25, 2026

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