Filter Options
Institutional OI Guide: PCR, IV and Boundary Execution
This screener is designed as a pre-trade filter. Use it to rank symbols by positioning quality, then execute only after confirming price structure, liquidity quality, and clear invalidation.
Desk Playbook
Sentiment Regime
Track PCR and IV-bias together. Extreme PCR without IV support is often noise; aligned extremes usually carry stronger directional intent.
Support/Resistance Migration
Prioritize names where spot interacts with OI boundaries. Break-and-hold above resistance or rejection below support can become tactical trades.
Execution Risk
Use the screener for selection, not blind entries. Confirm intraday structure, liquidity, and invalidation before sizing.
PCR Regimes and Desk Interpretation
Low PCR (Below 0.70)
Call-heavy positioning, often momentum-led optimism.
Desk view: Avoid chasing late highs. Prefer pullback continuation setups or hedged long structures once price confirms.
Balanced PCR (0.70 to 1.20)
Two-way flow with lower directional consensus.
Desk view: Range logic and mean-reversion often work better until a clean boundary break appears with volume.
High PCR (Above 1.20)
Put-heavy positioning with elevated hedging demand.
Desk view: Treat as defensive sentiment. If price holds support, reversal probability improves; if support fails, downside can accelerate.
Execution Workflow
1. Universe Narrowing
Start with filtered symbols showing clean PCR behavior and meaningful OI positioning shifts.
2. Regime Confirmation
Validate PCR regime against spot location (near support/resistance) and current intraday trend behavior.
3. Entry and Invalidation
Define exact trigger and stop before entering. If boundary reclaim fails, exit early instead of averaging.
4. Position Management
Scale out into strength/weakness and reduce size when volatility expansion goes against your thesis.
Common Process Errors to Avoid
- Using PCR as a standalone buy/sell trigger without price confirmation.
- Ignoring IV-bias shifts after entry when risk conditions clearly changed.
- Taking boundary breaks in poor liquidity with wide spreads.
- Overfitting to one expiry when term structure is materially different.
- Increasing size after invalidation instead of respecting predefined risk.
Practical FAQ for Active Traders
Should I always treat high PCR as bullish reversal?
No. High PCR is context, not a trade signal by itself. Use support behavior, trend strength, and volatility state to decide whether it is reversal or continuation.
When is multi-expiry mode better?
Use combined expiries for structural OI zones and broader positioning. Use a single expiry when you need near-term precision around weekly moves.
How should I combine IV-bias with trading status?
Higher quality setups are where IV-bias and boundary behavior align. Example: rising put IV with support failure is stronger bearish evidence than either metric alone.
Risk Disclosure: Options involve leverage and can lead to rapid losses. Screener output is analytical input, not financial advice.