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How does Open Interest affect option strategies like straddles or strangles?

Open Interest can be an important indicator when using strategies like straddles or strangles. A high OI at both the call and put strike prices in the same expiry suggests a lot of market interest and potentially larger price moves, which can be crucial when implementing strategies that rely on volatility. Monitoring OI changes helps in identifying if the market is anticipating significant price action.

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