What is the put/call ratio?

The put/call ratio compares bullish call positioning against bearish put positioning in the options market. Quantustik shows call/put (calls divided by puts), so above 1 leans bullish and below 1 leans bearish.

How to read it

On Quantustik's call/put convention: above about 1.5 leans bullish (upside positioning or short hedging); below about 0.7 leans bearish or defensive; around 1.0 is balanced. Example (illustrative): 300,000 calls of open interest against 150,000 puts is a ratio of 2.0 — distinctly call-heavy positioning.

Why extremes can flip meaning

Option-flow sentiment is often read contrarian at the extremes. When almost everyone has bet the same direction, there is little fuel left to push price further, and positioning becomes crowded and fragile. An unusually bullish reading can mark a crowded top; an unusually bearish one can mark an exhausted bottom.

Frequently asked questions

Is a high call/put ratio bullish?

On its face yes, but at extremes it is often read contrarian — very crowded bullish positioning can mark a fragile top with little buying fuel left.

Put/call vs. call/put?

They are inverses of the same data. Quantustik displays call/put (calls divided by puts), so above 1 leans bullish rather than bearish.

Can it tell hedging from speculation?

No — a fund buying puts to protect a position looks identical to an outright bearish bet, so it is a rough gauge, never a standalone signal.

See it on a ticker

Browse all S&P 500 tickers to see this metric applied to individual companies.

Related terms

Educational research only — not investment advice.