Enter the volume of put options traded and the volume of call options traded into the calculator to determine the P/C Ratio. This calculator can also evaluate any of the variables given the others are known.

## P/C Ratio Formula

The following formula is used to calculate the P/C Ratio.

P/C Ratio = Vp / Vc

Variables:

- P/C Ratio is the Put/Call Ratio
- Vp is the volume of put options traded
- Vc is the volume of call options traded

To calculate the P/C Ratio, divide the volume of put options traded by the volume of call options traded. A high P/C Ratio indicates a bearish market sentiment, suggesting that traders expect the market to decline. Conversely, a low P/C Ratio indicates a bullish market sentiment, suggesting that traders expect the market to rise.

## What is a P/C Ratio?

A P/C Ratio, or Put/Call Ratio, is 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. A high P/C ratio suggests that traders expect the market to decline, indicating a bearish sentiment, while a low P/C ratio suggests that traders expect the market to rise, indicating a bullish sentiment.

## How to Calculate P/C Ratio?

The following steps outline how to calculate the P/C Ratio.

- First, determine the volume of put options traded (Vp).
- Next, determine the volume of call options traded (Vc).
- Next, gather the formula from above = P/C Ratio = Vp / Vc.
- Finally, calculate the P/C Ratio.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

Put/Call Ratio (P/C Ratio) = 0.75

Volume of put options traded (Vp) = 500

Volume of call options traded (Vc) = 800