Option Analysis

Methodology & how to read these numbers

Put-Call Ratio (PCR)

PCR on this page is calculated as total open interest of all put strikes divided by total open interest of all call strikes for the selected expiry. A ratio above 1.0 mechanically means there is more open put OI than call OI; a ratio below 1.0 means the opposite. Interpreting PCR as bullish or bearish is not straightforward and depends on several factors:

• Underlying instrument — a PCR of 1.6 on Nifty 50 has historically been near the middle of its normal range, whereas the same 1.6 on Bank Nifty tends to sit near the higher end of its range.
• Expiry cycle — weekly-expiry PCR is generally noisier than monthly-expiry PCR because a large chunk of weekly OI is intra-day speculation rather than positional hedging.
• Market regime — in a strong up-trend, elevated PCR often reflects hedgers buying puts on gains rather than outright bearish positioning; in a persistent down-trend, low PCR can reflect capitulation rather than genuine bullishness.
• OI vs volume PCR — the OI-based PCR shown here reflects positional exposure. Volume-based PCR (not shown) reflects same-day flow and is a different indicator.
• Historical range — the same PCR reading should always be compared against the last 6–12 months of the same instrument's PCR distribution before being labelled elevated or depressed.

In other words, PCR > 1 does not automatically imply a bullish bias; it is one data point that must be read against the instrument's historical PCR range, the market regime and other flow indicators.

Max-pain strike

Max pain is an analytical construct — it is the strike at which the aggregate value of all open call and put contracts on that expiry would be at a minimum if the underlying were to settle exactly there. Because option writers (typically institutional) hold the opposite side of that OI, the max-pain strike represents the theoretical settlement level where option writers, in aggregate, would keep the maximum premium.

Max pain is not a price prediction. It is a snapshot of where open OI is currently distributed, and OI moves continuously as new positions open and existing positions close. Empirical studies of Nifty and Bank Nifty settlements have shown that the underlying occasionally closes near the max-pain strike on expiry day, but also shows significant deviation from it — especially in weeks that carry a strong directional catalyst (an RBI meeting, US CPI print, index rebalance, etc.). Treat the max-pain strike as one input to understand where option writers currently have concentrated exposure, not as a forecast.

Open interest at each strike

Open interest is the number of outstanding contracts (not contracts traded today) at each strike. Rising OI on a call strike means new contracts are being written or bought at that level, which is often interpreted as that strike acting as short-term resistance (the writer's break-even). Rising OI on a put strike is often interpreted as support at that level. These are pattern interpretations rather than reliable rules and should be corroborated with price action, volume, IV changes and the broader tape.

Data sources & disclosures

Live option-chain data is fetched from the Upstox Market Data API and refreshed continuously during market hours. Nifty 50 and Bank Nifty option contracts trade on NSE; Sensex options trade on BSE. Nothing on this page is investment advice or a recommendation to trade options. Options carry substantial risk of loss and are not suitable for every investor.