When Open Interest reaches zero, it indicates that all contracts for that particular stock or asset have been closed or settled. This suggests no active positions remain, often signaling the…
As the expiry date approaches, OI tends to decrease as traders close out or roll over their positions. An increase in OI just before expiry suggests the potential for large…
While Open Interest itself doesn’t directly influence pricing, it can be an indicator of market sentiment. A large OI at a certain strike price can indicate that many traders are…