In theory, option seller is obligated to the contract till the expiry in Europian option CE/PE. Then how intraday option sellers squareoff their positions and what is actually happening there?
What about OI reduction also?
The option seller handover the obligation to another seller by squaringoff.
OI reductions are happening when the seller and buyer agreed to close the contract before expiry.
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Option traders are only obligated while holding contract during the expiry and the obligation is enforced on expiry.He can trade this obligation/contract before that 
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