Jesus posts a chart of the Put/Call (P/C) Ratios throughout the day.

P/C Ratios display the total amount of put buying vs. call buying.

When the P/C Ratios spike, there is more put buying than call buying and vice versa.

Many traders consider a long bias when the P/C ratios are elevated and a short bias when low. When P/C ratios are elevated, there is a good amount of hedging taking place, and these hedges eventually have to be unwound.

When P/C ratios are low, there is not enough hedging, which could lead to some downside in the market as players scramble to add hedges into pullbacks.

As seen above, the ratios are represented as follows:

Questions or suggestions?

Please reach out if you have any further questions or suggestions.