The Put-Call Ratio (PCR) is a crucial metric in options trading, indicating the relative trading volumes of put options to call options. A PCR below 1 suggests more call options are being traded, signaling bearish sentiment, while a ratio above 1 indicates more put options are in play, suggesting a bullish outlook. PCR is a valuable contrarian indicator, helping traders gauge market sentiment and potential reversals.

Please note that here OI is seen in terms of the seller’s perspective.