Call/Put Ratio

Business, Legal & Accounting Glossary

Definition: Call/Put Ratio



Full Definition of Call/Put Ratio


The Call/Put Ratio is calculated by dividing the daily or weekly volume of call options by the daily or weekly volume of put options.

Typically, large call volume appears at market tops and large put volume at market bottoms. Only CBOE equity options or all CBOE options should be used for this indicator. Call/put ratios of the indices like OEX and SPX are distorted and clouded by arbitrage and hedging and do therefore not always reflect true investor sentiment. The Call/Put Ratio is often smoothed using a 4-week simple moving average.


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Definition Sources


Definitions for Call/Put Ratio are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd March, 2020 | 0 Views.