What is the put-call ratio?
Options give the right to buy (a call) or sell (a put) a stock at a set price. Someone buying calls is usually positioned for a rise, and someone buying puts for a fall, or hedging against one. The put-call ratio puts the two sides into one number.
It comes in two forms. PCR by open interest divides the number of outstanding put contracts by the number of outstanding call contracts. PCR by volume does the same using contracts traded in the day. Open interest reflects positions held, volume reflects today’s activity.
PCR = Put contracts / Call contracts
Below 1: more calls than puts. Above 1: more puts than calls. Exactly 1: balanced.
Real PCR for four large stocks
CHART
Put-call ratio, 4 large F&O stocks
Both ratios from NSE derivatives data for the trade date 2026-10-23, for the contract series expiring 2026-10-27.
| Stock | PCR (OI) | PCR (volume) | Max pain strike | Price |
|---|---|---|---|---|
| HDFC Bank | 0.50 | 0.52 | ₹720 | ₹692.8 |
| Infosys | 0.67 | 0.78 | ₹1,100 | ₹1,153.81 |
| ITC | 0.58 | 0.67 | ₹260 | ₹257.88 |
| Reliance Industries | 0.56 | 0.46 | ₹1,200 | ₹1,190 |
The two forms can differ: volume PCR is higher than open interest PCR for HDFC Bank, Infosys, ITC, meaning today’s trading leaned more toward puts than the positions already held. All four readings are below 1, so call contracts outnumber puts in each. That is common for individual stocks, where traders tend to buy calls more than puts, so a PCR below 1 on a single stock is not by itself a bullish signal. The ratio is more useful when you compare a stock with its own history.
How traders read it
The usual convention is contrarian. A very high PCR, with many puts, can mean pessimism is crowded and a bounce is more likely. A very low PCR can mean optimism is crowded and the stock is stretched. Others read it as a straight signal, with high PCR as bearish. Neither reading is reliable on its own, which is why PCR is paired with trend indicators such as RSI, the SMA and ADX.
Max pain
The table also shows the max pain strike, the strike price at which the most option buyers would lose money at expiry. Some traders think a stock drifts toward it near expiry. In this data the max pain strike sits between -4.7% and 3.9% away from the current price, a pattern some traders watch rather than a rule.
Frequently asked questions
What is a normal put-call ratio?
It varies by stock and by index, which is why traders compare a reading with that stock’s own history rather than with a fixed number. For individual stocks a ratio below 1 is common, because call buying tends to outnumber put buying.
What is the difference between PCR by open interest and by volume?
Open interest counts contracts still outstanding, so it reflects positions that traders are holding. Volume counts contracts traded during the day, so it reflects the day’s activity and can swing more.
Does the put-call ratio predict the market?
It is a sentiment gauge, not a forecast. Readings at extremes are sometimes followed by reversals, but the relationship is unreliable, so it is best used with other indicators.
WHAT THIS MEANS FOR YOU PCR describes what derivatives traders are doing, not what the company is worth. It applies only to stocks that have options, and it changes every day. Treat it as one sentiment input, never a reason to buy or sell on its own.
METHODOLOGY PCR (open interest) and PCR (volume) for the nearest expiry series, as of 2026-10-23, from Punji F&O sentiment data (NSE derivatives). Max pain is the strike with the lowest total option payout at expiry. Not investment advice.