Put to Call Ratio
The Put to Call Ratio is a widely used tool for gauging market sentiment1. It’s calculated by dividing the number of traded put options by the number of traded call options2.
Volume-based Put to Call Ratio: This ratio is computed by dividing the put trading volume by the call trading volume on a specific day3.
Open Interest-based Put to Call Ratio: This ratio is computed by dividing open interest in a put contract on a particular day by open call interest on the very same day3.
A rising put/call ratio, or a ratio greater than 0.7 or exceeding 1, means that equity traders are buying more puts than calls. It suggests that bearish sentiment is building in the market2. Conversely, a falling put/call ratio, or below 0.7 and approaching 0.5, is considered a bullish indicator2.
Bullish and Bearish
“Bullish” and “bearish” are terms used to describe market trends and investor sentiment:
Bullish: A bullish investor, also known as a bull, believes that the price of one or more securities will rise4. This optimism can apply to the market as a whole, a specific industry, or a specific stock. When the market is bullish, it’s on an upward trend5.
Bearish: A bearish investor, also known as a bear, believes that the price of one or more securities will fall4. This pessimism can also apply to the market as a whole, a specific industry, or a specific stock. When the market is bearish, it’s on a downward trend5.
These terms help investors express their expectations about future price movements and can guide their investment strategies.
https://www.barchart.com/stocks/quotes/MSTR/put-call-ratios
SO WE'D SAY BEARISH FAVORING ON MSTR INCOMING USING THE SIMPLE INFORMATION WE JUST LEARNED AND NOTHING ELSE.