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.
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.
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.