Put/call ratio
Also called P/C ratio, put call ratio
The put/call ratio compares put activity to call activity, either by volume for the session or by open interest for standing positions.
In more detail
A ratio above one means more puts than calls; below one, the reverse. It is commonly read as a sentiment gauge, on the reasoning that heavy put buying signals hedging or bearishness.
The reading is noisier than it looks. Puts are bought as hedges by holders who are not bearish at all, and large single trades can move the ratio without reflecting broad sentiment. The volume ratio and the open-interest ratio also answer different questions — one is today, the other is accumulated.
How Hermes measures it
Hermes publishes the open-interest put/call ratio on ticker pages and an options volume ratio in the screener’s momentum metrics.
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