The Lab
June 1, 2026

Put Call Ratio Tool

More Puts Than Calls. Bearish, or a Bottom?

This tool helps traders put current put/call ratio readings into perspective by showing how price has historically responded to similar levels, offering context on whether elevated or depressed readings have typically preceded meaningful moves.

The put/call ratio compares put volume to call volume and serves as a widely followed measure of market sentiment. A reading above 1 indicates more put buying than call buying, often reflecting hedging activity or bearish positioning. A reading below 1 suggests call buying is dominant and sentiment leans bullish.

Although the ratio is simple to calculate, its implications are frequently debated. Some interpret elevated readings as a warning of rising fear, while others view them as contrarian signals that extreme pessimism may precede a rebound. In practice, the meaning of any given level depends heavily on context.

What the Tool Shows You

Projection

45-Day Projected Price Cone

Projects a potential price range over the next 45 days by applying historical forward returns from past similar setups.

Probability

Probability Graph

Shows how often prices rose or fell after similar setups in the past.

Scan

Auto-Detection

The tool automatically scans the market and highlights stocks with the strongest setups for the day ahead.

Log

Past Similar Setups

A full log of every past day when conditions were similar.

How Traders are using the Put Call Ratio Tool

1

Morning Scan

Start the day by checking whether the tool is highlighting any unusual activity in your favorite stocks. This helps you quickly identify which names may be setting up for a potential move.

2

Review the Price Cone

See how price has historically behaved after similar setups. This gives you a realistic view of what typically happens next instead of relying on guesswork.

3

Size the move with the bar graph

Switch to Bar Graph view and set your target price level. The bars show how often similar setups reached that distance by upcoming expirations. Toggle between "By Touch" and "By Close" depending on your strategy.

4

Review the chart and table log for context

Review the historical matches before taking a position. Pay attention to how many comparable setups exist and whether they occurred during similar market conditions. This helps you determine how much weight to give the current signal.

Check your favorite stock's put/call ratio today

Open Put Call Ratio Tool

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