P/C Ratio Calculator

Formula

The formula to calculate the P/C Ratio is:

[ \text{P/C Ratio} = \frac{V_p}{V_c} ]

Where:

P/C Ratio: The Put/Call Ratio, a popular derivative indicator used by traders in the options market. It measures the trading volume of put options to call options and is used to gauge the overall sentiment of the market.

Let's say the volume of put options traded (Vp) is 1500 and the volume of call options traded (Vc) is 1000. Using the formula:

[ \text{P/C Ratio} = \frac{1500}{1000} = 1.50 ]

We get a P/C Ratio of 1.50, indicating a bearish market sentiment.