Traders may track and compare OI at different strike prices using multistrike OI analysis.
a) OI: OI stands for Open Interest, reflecting the total number of outstanding futures or options contracts that have not been closed or offset.
Why use it?
-> Open Interest is employed by traders and analysts to assess market health, liquidity, and trader interest. It aids in identifying trends and potential market movements.
Analysis-> Instrument Overview-> Open Interest-> Multistrike OI
How to use it?
-> Traders can analyze Open Interest in conjunction with other indicators to make informed decisions.
-> Rising OI may indicate increased market activity and interest while falling OI could suggest waning interest.
1) What does it mean when Open Interest remains steady while prices rise?
-> Steady Open Interest amid rising prices may indicate that existing positions are still active, but new positions are not being added at the same pace.
a) OI Metrics in Options Trading-> Link
-> For further support and understanding join our trading community group-> Telegram Link
The videos and content on this platform are purely for educational purposes to showcase the Stolo product and help people understand how the product works. We will not be responsible for your profit and loss. Please consult with your investment advisor before making any financial decisions.