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…
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…
