Questions tagged [open-interest]

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How options affect the index?

I am not able to get technical/logical reason behind following scenario. Can you please help me to explain the reason behind it? Context: Group of stocks makes the index. It means Index is dependent ...
Harshal Sakare's user avatar
0 votes
1 answer

How to know increasing open interest indicates new short contracts or longs contracts?

I trade on crypto market and recently I have learned that there is a tool or something named open interest which tells you the amount of long and short open contracts at any time. It is really helpful ...
Kia Khoshvaght's user avatar
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How do I close a put option when the company is about to file for bankruptcy?

I opened a put options by selling so I must buy to close. The company I have the open option position with is about to file for bankruptcy. How should I go about closing my put option. What's the ...
Youtubecomgoldminemusicinfo's user avatar
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1 answer

Why do i see this significant dip in OI on the first tick

Why do we see a huge(relatively) dip in OI on the first tick when the market opens ? Does this happens because people closing out their previous position the moment market opens ? Or there is ...
Namit Sinha's user avatar
1 vote
1 answer

Option trading volume inconsistencies

May I ask for your opinion on option trading volume numbers? A recent example might be DNN (Denison), a call option,expiration Mar 19, strike $2.50 Yahoo says in the option chart that the volumes were ...
John Lee McMahon's user avatar
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1 answer

Can a broker make it appear they have executed a 'buy to close' trade but in actual fact they simply have taken your position?

If you wrote a call option, and the underlying spiked up creating a margin call - which was not filled, can your broker make it appear that they executed a 'buy to cover' to close your position but in ...
Mash's user avatar
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1 vote
3 answers

Who do you buy options from, if open interest is zero?

If open interest is 0, who will you buy an option contract from? And how is the price calculated? Also, initially, how is the option contract price determined?
WindChaser's user avatar
1 vote
1 answer

Do I understand options open interest correctly?

I wasn't able to find a good example of how open interest works. Suppose at the beginning of trading period there is no open interest, these are the only trades made during these days, and all ...
Roman K.'s user avatar
0 votes
2 answers

Why doesn't cumulative call open interest and cumulative put open interest inform future stock directionality?

For example, how come the ratio of total puts and calls doesn't accurately inform of the stock's future movement?
JDM's user avatar
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2 answers

How open interest can be greater than the contracts traded for that day [closed]

Here is option chain data I am referring to. I was going through the option chain data. I noticed that the change in open interest was more than the volume that traded on that day. How is this ...
Surendra Pal Singh's user avatar