Daily deals in US, India updated almost daily. Only verified deals would be uploaded
Thursday, September 06, 2007
Put call ratio (PCR), which is the number of put options divided by the number of call options, is a popular sentiment indicator of option traders worldwide.
For starters, a put option allows the buyer the right, but not the obligation to sell a contract to the writer (seller), while a call option gives the buyer the right, but not the obligation to buy a contract from the writer.
When an investor buys a put option, it means he expects the markets to fall.
When an investor buys a call option, he expects the market to rise.
So, a rising PCR would mean investors are buying more puts or reducing calls.
And a falling PCR would indicate that call options are being added and put options being reduced.
This plunge reflects a bullish sentiment, as the put-call ratio is one of the best gauges to judge oversold (too bearish) or overbought (too bullish) zones.
......more to come........................
Trading Posts:
Entities and Condition in Trading System
Settlement of Futures and Options
Understanding Futures Contracts
Understanding Options Contracts
Comparison between Futures and Options
Frequently Asked Questions about Futures Contracts - part 1
Frequently Asked Questions about Futures Contracts - part 2
Frequently Asked Questions about Futures Contracts - part 3
Frequently Asked Questions about Options Contracts - Part 1
Frequently Asked Questions about Options Contracts - Part 2
Frequently Asked Questions about Options Contracts - Part 3
Frequently Asked Questions about Options Contracts - Part 4
Frequently Asked Questions about Options Contracts - Part 5 (Options Strategies)
Technical Analysis-BasicsTechnical Analysis - Support and resistance
Evergreen Posts
Popular Posts for last 7 days
-
Back in the 1920s, the economist George Taylor conceived the hemline index,finding that skirts got longer as the economy slowed. These days,...
-
Nifty Technicals forecast for Friday 23-January-2015 On 22-January-2015, Nifty closed at:8,761.40(+31.90) on Shortcovering rally. for ...
-
FAIL SAFE INDICATOR for Nifty Technicals for 30-Dec-2011 Nifty trin (Daily):.0.95 Support:.4600 , Resistance/Tgt :.4700 Previou...
-
It was a 'high' spirited Holi celebrations that had passengers happily cheering, but the aviation regulator who is very secular, is...
-
When the Central Bank(RBI) meets to decide on interest rates,it has significant effect on the stock markets. When the Central Bank(RBI) is e...
All Time Popular Posts
-
Lucky leopard escaped from Mysore Infosys. infosys mysore campus had an unusual drama early Wednesday morning. The jobless leopard(in sear...
-
Flyers Trapped, Robbers on loot. In an unprecedented occurrence, passengers flying or booked on Kingfisher flights were stuck in aircra...
-
Pakistani actress Veena Malik may be upping the TRPs by being part of the 'Bigg Boss' household in India, but in her country she is ...
-
Pakistani actor Veena Malik was injured in a car accident in Pakistan. Veena was travelling from Islamabad to Lahore. (Flashback: Veena Mali...
2 comments :
Genius Jaggu!
Welcome to blogworld! I never knew that you had a blog. I will visit regularly. :)
My blog, as you can see does not have any financial content - it is more of a blog aggregator. And I have kept my details fairly guarded in the blog circle. :)
Here I am the Visitor.
Dear genius,
Thank you for these lessons and hope you will continue to educate newbies.
Regards,
Raghavan
Post a Comment