PCR ( put & call Ratio) for clear Indication Nifty & bank Nifty
Hello Every one
Nowadays, peoples are very much interested in options why they should not if they can earn good amount by trading in options but before this they should understand data points & Greeks in that so let us understand about PCR in very easy way we should check NSE1 website then option chain Nifty option we can take Nifty as underline asset or Bank Nifty as an underline asset then do below calculation
Base on Volume - Number of open contracts on N S E 1 Option chain website Go Downside and check that figure and Divide example
base on volume = (4,34,367.00 calls / 6,75,997.00 Puts) PCR 0.64
base on OI (open interest) = (4,00,148. Call OI / 7,22,151 Put OI) PCR 0.55
by this we can initiate buy side or Go long with underline asset
PCR above 1.7 is over bought
PCR Below 0.6 is over Sold
Hope this is clear now for more clear view check all Expires of current week & month, so you should go long or short
Wise investing
Grow with learning
Hemant pagi
9898559842
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