% change in Open interest in option or future

General
1

Hi ,

How to read % percentage in open interest of any stocks in future & option, I mean how it is helpful to guage any stock trends in future & option ?

2

Open Interest is a vital indicator to gauge stock trend. You have to see if OI increase is Long Build up or Short build up, whether OI decrease is Long Cover or Short cover.

The various permutations / combinations are :

Addition (Long Buildup) of Long Futures OI is Green (or Bullish)
Reduction (Long Cover) of Long Futures OI is Red (or Bearish)

Addition (Short Buildup) of Short Futures OI is Red (or Bearish)
Reduction (Short Cover) of Short Futures OI is Green (or Bullish)

Addition (Long Buildup) of Long Calls OI is Green (or Bullish)
Reduction (Long Cover) of Long Calls OI is Red (or Bearish)

Addition (Short Buildup) of Short Calls OI is Red (or Bearish)
Reduction (Short Cover) of Short Calls OI is Green (or Bullish)

Addition (Long Buildup) of Long Puts OI is Red (or Bearish)
Reduction (Long Cover) of Long Puts OI is Green (or Bullish)

Addition (Short Buildup) of Short Puts OI is Green (or Bullish)
Reduction (Short Cover) of Short Puts OI is Red (or Bearish)

there are two parties to every contract. . .
so, only question though . . .

who is Bullish & who is sitting on opposite side of table & is Bearish . . .