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Showing posts with the label PCR (Put & call Ratio) for clear Indication Nifty & bank Nifty

PCR ( put & call Ratio) for clear Indication Nifty & bank Nifty

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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...