OPEN
INTREST
BY
RIJA TRADING
Agenda
WHAT IS OPEN
INTEREST?
WHERE WE CAN GET IT ?
HOW TO READ AND
ANALYZE IT?
DECISION MAKING WITH
OI ?
WHY IT IS SO
IMPORTANT?
2
OPEN • Open interest is the total value of active contracts for
options or futures, that have not been settled.
INTEREST • Open interest is only associated with the futures and
options markets.
3
What is open
interest
SUPPOSE 15475 IS THE OI(Open Interest) value of 19400CE(option Stock).
It means that there is 15475 active contracts are trading that time. It
indicates that 15475 people are trading that Option/Future Stock at that
time.
4
Where We
can get OI
DATA.
• https://www.nseindia.com/option-chain
• In Zerodha chart there was an indicator in the name of Open Interest.
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HOW TO READ AND ANALYZE IT?
OTM(out of the
ITM( IN the money) money)
ATM(AT the money) ATM(AT the money)
OTM(out of the ITM (IN the money)
money)
6
DECISION MAKING
WITH OI ?
• We read Open Interest data as it is for Writer’s/Seller’s Data (In the case
of Options).
• While analyzing the data we keep in mind that this data is dominantly
connected with option sellers/writers.
7
WHY IT IS SO
IMPORTANT?
• OI DATA gives us Important levels of trading.
• OI DATA gives us right direction of market moves.
• It gives us accurate sentiment of market.
8
The way to
get started is
to quit talking
and begin
doing.
Walt Disney
9
Thank You
RIJA TRADING
10
