Put/Call Ratio Definition
Put/Call Ratio is a options data metric used in Bitcoin treasury analysis.Ratio of put to call open interest.
- What is Put/Call Ratio?
- Ratio of put to call open interest.
- Put/Call Ratio Definition
- Ratio of put to call open interest.
- Put/Call Ratio Meaning
- Ratio of put to call open interest.
- How to calculate Put/Call Ratio
- Put OI ÷ Call OI (using notional OI).
- Why does Put/Call Ratio matter?
- Quick read on directional skew (< 1 bull‑tilt, > 1 bear‑tilt).
- What does Put/Call Ratio mean?
- Ratio of put to call open interest.
- Put/Call Ratio explained
- Ratio of put to call open interest.
- Put/Call Ratio formula
- Put OI ÷ Call OI (using notional OI).
What the term means
Put/Call Ratio compares bearish vs bullish positioning using notional open interest:
Put OI$ ÷ Call OI$
Ratios <0.5 indicate call dominance (bullish gamma); >1.2 signal put-heavy fear regimes. We refresh the ratio live from total dollar open interest.
Why the term matters for Bitcoin treasury companies
Gamma direction arrow
Low ratios (<0.4) mean dealers are short call gamma and long put gamma—any uptick sparks upside chases. High ratios (>1.0) flip dealers into selling machines on down moves.
Extreme readings = reversals
Ratios below 0.2 precede 100–300% moonshots; above 1.5 precede major drawdowns. The ratio is the best “something big is about to happen” signal in the options ecosystem.
Premium predictor
Falling ratios widen mNAV multiples; rising ratios compress them. A swing from 0.9 to 0.3 can add 1–2× to mNAV in weeks—or erase it if the move reverses.
Capital-raising signal
Management launches raises when the ratio is <0.4 (call gamma support). When it sits above 1.0, they wait—put gamma would crush the stock on announcement.
Retail vs institutional sentiment
Extreme lows reflect retail call FOMO; extreme highs reflect retail panic puts. Institutions often fade both extremes, using the ratio as a contrarian trigger.
Volatility feedback loop
Low ratios pump IV as call demand surges; high ratios do the same via put demand. The ratio governs the volatility regime and predicts gamma cliffs around OPEX.
Bottom line
Put/Call Ratio is the treasury sector’s fear/greed speedometer. <0.4 = rocket fuel, 0.4–0.8 = balanced grind, >1.0 = meat grinder. Watch it daily—it doesn’t just measure sentiment, it creates the next 50–200% move.
How BitcoinQuant incorporates it
We compute Put/Call Ratio from live notional OI—Put OI ÷ Call OI (using notional OI). Dashboards display trend bands (0.3, 0.5, 0.8, 1.2, 1.5) and trigger alerts when readings leave the 0.5–0.8 “healthy” zone so desks can position ahead of gamma swings.