Is there publically available option pricing model or theory that considers open interest/volume % change?
I believe that laws of supply and demand effect options like any tradable good. However, I have a hard time finding mathematical model showing the relationship between classic Greeks and open interest and options volume % change.
Ultimately if someone sells/buys option far in the money or out of money it will affect IV which then moves the option price, IV isn't the mesuring size of the commitment am I correct?
I would like to predict changes in asset prices based on changes in traders commitment (similar to futures COT). Let's say we have huge surge open interest in out of the money puts or calls we can draw a concussion that market thinks asset price going to make a large move. Based wherein the option chain volume changes we should be able to predict the direction as well.
Is there an existing theory around this?