Get alerted when the Put/Call Ratio component of the Fear & Greed Index signals extreme options-market fear or greed. When traders are buying more puts than calls, it signals fear — often a contrarian opportunity.
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US Fear & Greed Index vs. S&P 500
What is the Put/Call Ratio?
The Put/Call Ratio measures the volume of put options traded relative to call options. A high ratio means more puts are being bought — investors are paying for downside protection, signalling fear. A low ratio means more calls are being bought — investors are betting on upside, signalling greed or complacency.
Because the Put/Call Ratio measures actual money being placed in the options market, it's considered a market-sentiment measure of institutional and retail investor fear. It is one of the seven components of the Fear & Greed Index monitored by FearAlert.
More puts than calls being bought. Investors are hedging against a market decline — a contrarian bullish signal for patient investors.
More calls than puts being bought. Investors are betting on upside without hedging — a sign of complacency that often precedes corrections.
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