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Open interest when closing out a position [duplicate]

According to CME's definition of Open Interest, if Trader A is long 3 contracts, and decides to sell 1, then the open interest decreases by 1. What I don't understand: if Trader A sells their contract,...
Will's user avatar
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1 vote
1 answer
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How is Open Interest calculated?

(More specifically on crypto exchanges) If traderA opens 1 long and traderB closes 1 long, thus delta Open Interest is 0. Then what if traderA opens 1 long, and traderB opens 1 short, is delta Open ...
kpeteL's user avatar
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2 votes
0 answers
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Dealer's directional open interest

This question is related to the previous question I asked here. In one of the answers, the article from Squeezemetrics that discusses the effect of GEX on the spot price of an asset was pointed out. ...
TryingHardToBecomeAGoodPrSlvr's user avatar
6 votes
3 answers
570 views

Relationship between options open interest and spot price movement

The hypothesis that I am mulling over (and more so, its effect on stock price movement) is the following. Hypothesis: Buyers of options do not hedge (as they don't need to) while sellers usually hedge ...
TryingHardToBecomeAGoodPrSlvr's user avatar
0 votes
0 answers
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Long and short Open interest not adding up to 0 ESMA COT data

I have a rather silly question, from my understanding in the futures market (commodities in this case) There should be a buyer and a seller for every futures position that is initiated. Open interest:...
Jorisdrees's user avatar
0 votes
1 answer
54 views

Open Interest on Stocks

According to the first bullet point in this explanation, "In the stock market, open interest is the number of buy orders submitted before the market opens. When the open interest is high, people ...
user61814's user avatar
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1 answer
192 views

If every buyer in a futures contract has a corresponding seller, how can open interest ever be an odd number? [closed]

I'm new to trading so pardon the entry-level question: Here's a screenshot of today's settlement for the September 2021 S&P futures contract on the Chicago Mercantile Exchange: The prior day's ...
Third-rate Coder's user avatar
2 votes
5 answers
872 views

Who hedges (more): options seller or options buyer?

When the open interest increases, this means that there is a buyer and a seller of that option. Both seller and buyer are behooved to hedge their positions, with the opposite sign; but I doubt that ...
MaviPranav's user avatar
1 vote
1 answer
345 views

ICE futures settlement prices change with zero volume and zero OI

I found that all of the electricity futures prices (on ICE) at a particular hub changed on December 2, even though a) most had zero open interest and zero volume, and b) the quoted prices are EOD ...
CasusBelli's user avatar
4 votes
1 answer
289 views

Futures short interests vs open interests

I came across this article talking about "short interests" in VIX futures. My question is what does "short interest" even mean here? My understanding is that the futures are not "issued" (opposite ...
CuriousMind's user avatar
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1 answer
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Large Differences in Open Interest between Similar Strikes

Consider the image attached, showing a part of the options chain for the NDX expiring July 20. What can possible explain such large differences in Open Interest across similar strikes, e.g. 818 at 7,...
Krpcannon's user avatar
5 votes
2 answers
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call vs put open interest

I have been observing the data for US stock options. In general, it seem like there are more open interest for call rather than for put, is there a reason people like to write more call? at the ...
user201706's user avatar
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0 answers
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to interpret open interest

I am interested to ask about how to interpret option open interest. For small cap stock options, it makes sense to see open interest as liquidity. On the other hand, for big name stock options where ...
user201706's user avatar
0 votes
1 answer
162 views

Open Interest on Options on Futures

Is there anywhere that reports open interests or the max pain on futures such as Crude (CL), Natural Gas (NG), or E-Minis (ES)? I cannot seem to find this data, though I have seen it listed on trading ...
RulesOfTheGame's user avatar
0 votes
1 answer
156 views

Open interest and short selling

Open interest of SPY: https://finance.yahoo.com/q/op?s=SPY+Options If someone sell short a contract the open interest adds up or down? The open interest on yahoo finance is a reliable Information of ...
sparkle's user avatar
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3 votes
2 answers
298 views

VIX Futures data: why happen to have settle price > 0 and Volume = O.I. = 0

This question is about something observed hands on data that makes me a little confused. Consider the term structure of futures on VIX of Monday, December 27, 2010. You can find it at the CFE market ...
Gabriele Pompa's user avatar
3 votes
3 answers
1k views

Estimate reasonable trade sizing based on daily volume

Let's assume we have data for daily volumes traded on some asset (and open interests as well). Now if we are planning to make a trade we don't want to fat-finger it and want it to be of a reasonable ...
sashkello's user avatar
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1 vote
2 answers
389 views

changes in open interest vs changes in underlying volume

Has a relationship been noted? Mostly, I'd like to know if the open interest increases on an underlying, does the underlying usually see increased trading? My guess would be "yes" since MMs can ...
user avatar
3 votes
2 answers
576 views

how to define liquidity in equity, index, and etf options

i've heard several ways to put a metric on liquidity of options.. obviously liquidity isn't a constant.. things like the Bid/Asks spread, liquidity of the underlying.. Trying to find a way to ...
cdcaveman's user avatar
11 votes
4 answers
2k views

Can the futures market's open interest predict commodity, treasury, and equity returns?

I came across this article and became curious. Can the futures market's open interest really predict market action?
Ralph Winters's user avatar