How PCR is calculated
Formula
OI PCR = total put open interest ÷ total call open interest. Volume PCR = total put volume ÷ total call volume.Example
For a Nifty weekly expiry, total put open interest is 9.6 lakh contracts and total call open interest is 8.0 lakh contracts. The OI PCR is 9.6 ÷ 8.0 = 1.20: there are 1.2 puts open for every call.
How traders read PCR
In Indian index options, most open interest is built by option sellers. Large put open interest often means traders have sold puts below the market, expecting it to hold; large call open interest means they have sold calls above it.
| PCR | Common reading | Caution |
|---|---|---|
| Rising, above 1 | Put writing dominates; support seen below the market | At extremes, positioning can unwind sharply |
| Around 0.8 to 1.2 | Balanced positioning | Says little on its own |
| Falling, below 0.8 | Call writing dominates; resistance seen above | Very low readings can come before short covering |
These readings are conventions, not rules. PCR describes positioning, which can change within hours.
How to use PCR well
- Track the change, not just the level. A PCR rising through the session says more than a single number.
- Look at strikes, not only the total. The option chain shows where put and call open interest is concentrated.
- Combine it with price, change in open interest and implied volatility.
- Compare like with like: weekly and monthly expiries can show different ratios.
Related terms
Learn more
Frequently asked questions
Is a high PCR bullish?
It is often read that way in Indian index options, because put writers are usually the sellers. At extremes it can also be a sign that positioning is stretched.
Where can I see the PCR?
In the option chain summary, for each underlying and expiry.
Should I trade on PCR alone?
No. Use it with price, open interest by strike and implied volatility.
Trading involves substantial risk. Examples on this page are hypothetical and are not investment advice.