The put-call ratio (PCR) is a snapshot of how the options market is leaning — the number of open (or traded) put contracts divided by call contracts. It is one of the most quoted options readings, and one of the most misread. WealthStar shows it descriptively on every F&O name.
PCR is puts divided by calls — either by open interest or by volume. A ratio around 1.0 means puts and calls are roughly balanced. Above about 1.2 is put-heavy; below about 0.7 is call-heavy. It is a reading of positioning and sentiment, not a mechanism that moves price.
A high PCR is frequently read as more bullish and a low PCR as more bearish — the opposite of the naive interpretation. That's because it is often read from the option writer's side (puts written as support, calls written as resistance) and used as a contrarian gauge: when positioning gets lopsided one way, the crowd may be over-committed. It is most informative at extremes, less so near neutral.
PCR is a sentiment reading, not a forecast. It tells you how positioning leans today; it does not make the price go anywhere. It is most meaningful on liquid, heavily-traded names and indices — on thinly-traded stocks it is mostly noise — and it works best confirming a picture you have built from trend and leadership, not driving a decision on its own.
Educational analysis only. WealthStar shows descriptive data and classifications — not buy/sell calls, price targets, or investment advice, and it is not a SEBI-registered research analyst service. Do your own research.