What does this mean in open interest and volume

Hi @Sensibull , I have following data for options on one particular day.

100 open interest - 900 volume

200 open interest - 220 volume

As far as I understood , there is 100 option sellers and lots of option buyers in first case and not much option buyers playing in 2nd case.

Can we interpret anything from this data ? to decide if its good for option buying or selling.

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It seem Intraday trader are much more than holding overnight position, means traders not sure/confident about next day move so few people hold position for next day that’s I observe.

This shows trader have full confident about their trade on contract (favourable) move, that’s why they hold their position.

This is what I observe from your given case.


@vishnux you may have to check how open interest is calculated for you to understand how OI and volume works. https://zerodha.com/varsity/chapter/open-interest/

Yes i know how it works

1.Open interest is formed only when option writers sells position.
2.if some one buys from option sellers and sell back to another seller, this does not create open interest
3.if open interest is created there is also buyer at same time , like volume.
4.only when option seller square off open interest is down

can we interpret something from this ? since there is lot of intraday traders , we can sell option when the price is up … so end of they day when they square off , we get premium ?

I mean is there any hedge between both scenarios ? which is good for option selling.

Volume are just like INTRADAY OI
Simply VOL & OI interpretation is not enough to come to conclusion
Need more INFO like Strike ITM, ATM or OTM
Along with greek’s even for INTRADAY also.

  1. Both Buyer and Seller equally imp to form OI not just seller.

Not necessary what you say if new seller comes OI will remain same.
Actually your point are not fully justify what you want to say.


yes correct , I meant if one seller go away without any new seller.