What Is the Put/Call Ratio in Crypto Options?

The put/call ratio is the number of put options divided by the number of call options over the same period, measured either by trading volume or by open interest. A value below 1 means calls outnumber puts, and above 1 means puts outnumber calls. It summarizes positioning rather than predicting direction, and because puts are often bought to protect long holdings, a high ratio alone does not mean traders expect a decline.

By COINOTAG Research DeskLast updated October 5, 2026Sources

How it is calculated

Total puts are divided by total calls. A volume-based ratio shows the day's flow, while an open-interest-based ratio shows positions that have built up over time. The two can differ.

Worked example

Suppose an expiry has 30,000 put contracts and 60,000 call contracts in open interest. The ratio is 30,000 / 60,000 = 0.5, which means two calls for every put. If put open interest rises to 75,000, the ratio becomes 75,000 / 60,000 = 1.25.

How to read it

Very low or very high readings can point to crowded positioning, but protective put buying also lifts the ratio, so it is not a signal by itself. It is used alongside max pain and open interest to understand market context. This text is educational and is not investment advice.

Frequently Asked Questions

3 questions

What does a put/call ratio above 1 mean?

Depending on the measure used, puts outnumber calls. Because puts are often bought as protection, it does not by itself mean traders expect prices to fall.

Is it based on volume or open interest?

Both are used. The volume-based ratio reflects daily flow, and the open-interest-based ratio reflects accumulated positions.

Does the put/call ratio predict price?

No. It summarizes positioning and gives no guarantee about direction.

Related Terms

What is Crypto Options?
Crypto options are derivative contracts that give the holder the right, but not the obligation, to buy (a call) or sell (a put) a cryptocurrency at a fixed strike price on or before an expiry date. The buyer pays a premium up front, and that premium is the maximum possible loss, while potential profit can be much larger. Calls profit when the price rises above the strike; puts profit when it falls below. Because risk is capped yet upside stays open, options let traders hedge holdings or speculate on price and volatility — most actively on Bitcoin and Ethereum — without committing their full capital to the position.
What is Open Interest in Crypto Options?
Open interest in options is the total number of option contracts that have not yet been closed, expired or exercised. It rises when a new buyer and a new seller open a contract and falls when existing positions are closed. It differs from trading volume: volume counts contracts that changed hands during a period, while open interest counts contracts that are still alive.
What is Max Pain in Crypto Options?
Max pain is the strike price at which the total payout owed to option buyers at expiry is at its lowest, meaning the largest number of options expire worthless. It is calculated separately for each expiry date from the open interest at every strike. Some traders watch it as a reference level because price sometimes drifts toward it near expiry, but it is an observation, not a rule.
What is Implied Volatility in Crypto Options?
Implied volatility (IV) is the annualized price fluctuation the market expects for an asset, calculated backward from option prices. Unlike historical volatility, it looks forward. When option premiums rise, IV rises. IV measures the expected size of a move, not its direction, and is quoted as an annual percentage.
What is P/E Ratio?
The P/E ratio (price-to-earnings ratio) is a valuation measure found by dividing a company's share price by its earnings per share. It shows how many dollars investors pay for one dollar of the company's annual profit.