Understanding Put Call Ratio
As the name suggests, it is the ratio of all the Puts/Calls traded
every day. If the ratio is more than 1, it means that more puts have
traded during the day and if it is less than 1 it means more calls
traded during the day.
To trade based on PCR; you will first need to collect historic PCR to know the extreme ends it can reach. NSE shares this information on this link daily. Assume that this average range for PCR over the last 1 year is in between 0.7 and 1.3.
PCR is also a contrarian strategy which believes that option buyers will typically lose money. So a typical way to analyse PCR would be:
a. If PCR is below
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To trade based on PCR; you will first need to collect historic PCR to know the extreme ends it can reach. NSE shares this information on this link daily. Assume that this average range for PCR over the last 1 year is in between 0.7 and 1.3.
PCR is also a contrarian strategy which believes that option buyers will typically lose money. So a typical way to analyse PCR would be:
a. If PCR is below
posted by Bramesh at
6:23 PM
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