Nifty Bank Index
Education

Institution Option Trading Part-2

249
PCR (Put-Call Ratio) – Institutional Trading Strategy

What is PCR?
PCR = Put OI ÷ Call OI
It shows market sentiment of big players in indices like NIFTY 50.

Institutional Psychology

2. How Big Players Use PCR

Retail buys options randomly
Institutions control PCR zones to trap traders
👉 You follow PCR = You follow smart money
📈 PCR Levels (Game Changer)

3. Key Zones

PCR < 0.7 → Bearish sentiment (too many Calls) → ⚠️ Reversal possible
PCR 0.7 – 1 → Neutral zone
PCR > 1.2 → Bullish sentiment (too many Puts) → ⚠️ Reversal possible

👉 Extreme PCR = Trap zone (Institutional move coming)

🔥 Pro Institutional Setup

4. Entry Logic

PCR very high (1.3+) + Resistance → SELL (market fall likely)
PCR very low (0.6-) + Support → BUY (market bounce likely)

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