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In finance the put/call ratio (or put-call ratio, PCR) is a technical indicator demonstrating investor sentiment. [1] The ratio represents a proportion between all the put options and all the call options purchased on any given day. The put/call ratio can be calculated for any individual stock, as well as for any index, or can be aggregated. [2]
This makes put-call parity an essential concept in options trading. One of the most important principles in options trading is known as put-call parity. The term describes a functional equivalence ...
A box spread consists of a bull call spread and a bear put spread. The calls and puts have the same expiration date. The resulting portfolio is delta neutral. For example, a 40-50 January 2010 box consists of: Long a January 2010 40-strike call; Short a January 2010 50-strike call; Long a January 2010 50-strike put; Short a January 2010 40 ...
A call option is in the money when the strike price is below the spot price. A put option is in the money when the strike price is above the spot price. With an "in the money" call stock option, the current share price is greater than the strike price so exercising the option will give the owner of that option a profit.
The put-call ratio, which measures the amount of put buying relative to calls, hit a 12-month high for bitcoin open interest. "All About Bitcoin" host Christine Lee breaks down the Chart of the Day.
In the financial world, options come in one of two flavors: calls and puts. The basic way that calls and puts function is actually fairly simple. A call option is a contract giving you the right to...
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