Options Volume and Open Interest
What is options volume and open interest? How is options volume and open interest calculated? Options volume tells you how many contracts are traded today. Open interest is calculated at the end of the trading day and open interest will not change during the trading day. An open contract consists of one buyer and one seller. Watch this video to demystify open interest and options volume.
6 Comments
Greg
December 28, 2015After watching this video I had a ah-ha moment. I understand why my past attempts at pinning plays didn't always work out. Thanks for posting the video.
Ted
December 28, 2015Hi Don, I really appreciate the overview and clarification. I have taken a some of your course work previously and I gotta tell you much of it is over my trading head. However, with TheoTrade newsletters I hope to catch up so I'll have a thiimblle full of quant capability
Ted
December 28, 2015oops, wrong button. So that I'll have a thimble full of Quant power. Thanks, Ted
George
December 28, 2015Don - I appreciate the insight on high open interest ... and would appreciate a follow-on video on how/when to use high open interest in an options setup. Great info ... thanks
Walt
December 28, 2015I like to follow the IC trades and although I look at OI and Vol,
I look at 15 delta or lower for trades irregardless of what the OI or Vol is.
Matt
December 29, 2015I'll admit my win/loss ratio on pinning completely blows, it makes much more sense now, gonna stay away.
Thanks Don!