Articles - Futures & Options
Put Call Ratio (PCR) in Share Market
Options are derivative instruments, which means that their value is derived from some underlying asset, like stocks, bonds, or currencies to name a few. Typically, options are used for speculation or as risk-hedging tools by market participants. But options can also be put to an alternative use, like that of predicting the market movement.
The Put-Call Ratio, or the PCR, which is a metric widely deployed by investors to assess the sentiment which is driving the market and is used to predict whether the current trajectory is heading towards a bull-run or a bear-run.
Let’s first go through a quick recap around the basics of options before getting into the details of the Put-Call Ratio.


