These ratios include US Options across all exchanges, and filter out large ETF & Index options.
What are Put Call Ratios?
Standard put/call ratios compare the volume of put options traded vs the volume of call options traded. Some believe that when the ratio shifts above 1.0 it may be an indicator that traders are concerned about market weakness. Conversely if the indicator drops below 1.0 it may signal that traders are electing to trade more call positions which is a bullish signal.
There is a high amount of “day trading” in options, which means that traders both open & close a position in the same day. This volume is shown in Put/Call Volume indicators and may create false signals in standard volume put/call indicators.
Accordingly, SpotGamma includes and additional “open interest” put/call ratio. This compares the size of open put positions to the size of open call positions. For options contracts to be registered in open interest, a trader must hold the options position overnight.