What Is PCR and How Should It Be Interpreted?
PCR stands for put-call ratio. It compares put activity with call activity and is commonly calculated from open interest or volume. It is a useful summary statistic, but it is not a standalone prediction of market direction.
Two common PCR approaches
OI-based PCR compares put open interest with call open interest. Volume-based PCR compares put trading volume with call trading volume. Because they measure different things, the two values can tell different stories at the same time.
The exact interpretation also depends on the underlying, expiry and strikes included in the calculation.
Why a high or low PCR is not automatically bullish or bearish
Options can be bought or written for many reasons, including hedging, income strategies and portfolio protection. A large amount of put activity does not automatically mean traders expect a fall, and heavy call activity does not automatically mean the market must decline.
PCR is most useful when combined with price behaviour, OI changes, strike concentration and broader market context.
Watch the trend, not only one reading
A single snapshot can be noisy. Watching how PCR changes while the underlying moves can provide more context than reacting to one number in isolation.
Large expiry-related adjustments can also change OI quickly, so compare the ratio with the timing of the session and the selected expiry.
Using PCR in SS MarketVerse
Where PCR is shown in SS MarketVerse, it should be treated as one analytical input among other option-chain fields. The platform does not present PCR as a guaranteed directional call.