When trading options, you’ll frequently hear about Open Interest (OI). OI is a measure of how many option contracts are currently active (open) in the market. It’s different from volume – volume counts how many contracts traded today, OI counts how many contracts exist (not yet exercised or closed). OI can provide clues about market sentiment and support/resistance levels.
Share this post
5. Open Interest & Market Sentiment
Share this post
When trading options, you’ll frequently hear about Open Interest (OI). OI is a measure of how many option contracts are currently active (open) in the market. It’s different from volume – volume counts how many contracts traded today, OI counts how many contracts exist (not yet exercised or closed). OI can provide clues about market sentiment and support/resistance levels.