Put Call Ratio
When determining whether the put side or call side is dominant, the Put-Call Ratio (PCR) serves as a valuable tool for interpreting the sentiment within derivative markets. Traders consistently track diverse indicators to assess market sentiment and formulate informed trading strategies. Quantsapp helps with its comprehensive range of tools associated with PCR, enabling the identification of subtleties within underlying assets such as Nifty, BankNifty, and others.
Open Interest Put Call Ratio (OI-PCR) = Total Put OI/ Total Call OI
Options Open Interest = Option Buyer + Option Seller, however
Options Writers stake is high in the Market because of following reasons:
1. Unknown Loss
2. Limited Profit
3. Margin
4. Negative Reward to Risk
But if still Option Seller writes indicates conviction & well-researched approach, so Options OI is analysed from the Seller’s perspective which helps in gauging sentiments.
What you’ll learn
Varun Shetty possesses rich experience in the field of training, he is amongst the best experts for gaining an understanding of Equity Derivatives Trading.
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