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【Call/Put Ratio】Description

@TigerFeatures
1.What is Call/Put Ratio Call/Put Ratio displays the ratio of all calls and all puts in real-time. 2.How to use Call/Put Ratio Call/Put Ratio is a classic option technical indicator used to analyze and judge the current market sentiment changes: As a general rule of thumb, when Call/Put is high, it means that the market is heavily trading calls; when Call/Put is low, it means that the market is heavily trading puts. Also, think that most trades are buys. Note: The high/low level here can be defined by the tigers based on your own investment experience and specific targets. As shown in the options of COIN below, when the Call/Put Ratio continues to rise, it means that the market is becoming more and more optimistic, and the stock price may rise. But in practical scenarios, it can also be used as a reverse indicator: if the Call/Put Ratio climbs to an extreme high, it means that the market is already oversold, a signal to buy. Conversely, if it is extremely low, it is in an overbought state, which is a selling signal. As shown in the AMC screenshot below, the options market peaked on 2/28, and many investors bought Call, but the stock market fell all the way after 2/28. Therefore, please pay attention that it is dangerous to trade only on one technical signal. At the same time, the above are the stocks with more options trading volume. If the trading volume of options is not much, then the meaning of this indicator is also low. We sincerely recommend that if you really want to trade in a bullish direction, it is better to have other technical indicators (at least two) in addition to the Call/Put Ratio giving a bullish signal, and also for short selling. In addition, tigers can also make weighted adjustments to the Call/Put Ratio according to your own investment strategy. For example, the dollar-weighted Call/Put Ratio tends to be a better inverse indicator, according to 'Macmillan on Options'. 3.Feature Navigation Stock Quotes Page--Options Tab-- Bottom Navigation Analytics
【Call/Put Ratio】Description

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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