The Put/Call Ratio is one of the simplest yet most powerful sentiment indicators available—and it’s built right into the StockBox. This tool helps gauge investor sentiment by comparing the number of bearish bets (puts) to bullish bets (calls) placed in the options market.

What Is the Put/Call Ratio?

The Put/Call Ratio (PCR) measures how many put options (bearish bets) are being bought compared to call options (bullish bets) over a given time period. It’s calculated by dividing put volume by call volume:

Put/Call Ratio = Put Volume ÷ Call Volume

PCR > 1 → More puts than calls → Bearish sentiment

PCR < 1 → More calls than puts → Bullish sentiment

While modest PCR readings can support the prevailing trend, extreme levels often serve as contrarian signals—suggesting a potential turning point in market sentiment.

Why It Matters—Even If You Don’t Trade Options

You don’t need to trade options to benefit from the Put/Call Ratio. We regularly use this tool when analyzing forex, indices, commodities, and equities.

Why? Because extreme fear or greed in the options market often spills over into broader risk sentiment—creating potential contrarian opportunities. When fear dominates and put buying spikes, we could be near a short-term bottom. When call buying soars and greed is rampant, it might be a sign of a market top.

How We Use It in the stockBox

We’ve built in clear thresholds for Extreme Fear and Extreme Greed to help you quickly spot sentiment extremes:

Above the Extreme Fear threshold → Traders are overwhelmingly bearish. This can signal a potential bullish reversal.

Below the Extreme Greed threshold → Excessive bullishness might warn of a market top.

The PCR isn’t used in isolation—but as part of a broader confluence of signals, it adds meaningful value to timing decisions.

Frequently asked questions (FAQs)

Is there a trial available for the stockBox?

We do offer trials for the StockBox! Our trials offer 30 days access to the tool for a non-refundable price of FREE. The FREE can be applied as credit towards your final purchase. To get your trial started, please fill out this form here. A member of our team will reach out to you shortly to get you started!

is the StockBox 100% accurate?

No, the StockBox is not 100% accurate. There is no tool, trading strategy, or trader that is 100% accurate at predicting the way the market moves. We do not recommend blindly following any indicator or signal service. There is a significant degree of risk involved in trading.

What assets are included on the StockBox?

AAL, AAPL, ABBV, ABNB, ABT, ACN, ADBE, AFRM, AKAM, AMAT, AMD, AMGN, AMP, AMT, AMZN, ANET, APP, AXP, BA, BAC, BIIB, BKNG, BLK, BMY, BRK.A, BX, C, CAT, CBOE, CCI, CCL, CEG, CLX, CMCSA, CME, CMG, COF, COIN, COST, CPAY, CRM, CSCO, CTSH, CVS, CVNA, DAL, D, DE, DG, DIS, DLR, DLTR, DKNG, DUK, EBAY, EL, ELF, ENPH, EQIX, ETSY, F, FDX, FFIV, FI, FSLR, FTNT, GD, GE, GEN, GEV, GILD, GIS, GM, GOOGL, GPN, GS, HD, HLT, HON, HOOD, HSY, IBM, ICE, INTC, INTU, IT, JNJ, JPM, K, KHC, KO, KR, LLY, LOW, LULU, LUV, MA, MAR, MCD, MDT, META, MGM, MMM, MO, MRK, MSCI, MSFT, MSI, MU, NEE, NFLX, NKE, NOW, NVO, NVDA, O, ORCL, OXY, PANW, PEG, PEP, PFE, PG, PLD, PM, PNC, PYPL, QCOM, RBLX, RCL, REGN, RKLB, ROST, RUN, SBUX, SEDG, SHOP, SMCI, SNOW, SNPS, SO, SOFI, SPG, SPGI, SPOT, STZ, SYY, T, TGT, TJX, TMUS, TROW, TSLA, TSM, TSN, TTD, UAL, UBER, UNH, UNP, UPS, USB, V, VRSN, VRTX, VZ, WFC, WMT, WYNN, XEL, XOM, YUM

is the StockBox good for Day traders/ Swing traders?

The StockBox is a great resource for both swing traders and shorter term traders, as it incorporates a good mix of market sentiment indicators like COT and retail positioning, as well as economic/fundamental analysis. The bullish/bearish biases are not necessarily timeframe dependent, and are simply a directional bias until new data indicates a new bias. We have both day traders and swing traders using the tool.

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LINDEX is a leading financial analysis and trading education company dedicated to empowering traders of all levels. Our team combines extensive market knowledge with cutting-edge technology to provide valuable insights and tools for traders worldwide.

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How To Use The Put to Call ratio