Open Int and Volume on Options?

Question

What does the column open int and Volume Represent in the options screen?

Answer 1

I got lost from the above expanation... here's the K.I.S.S answer...

Open interest = total # of contracts sold
Volume = # of contracts sold for the day
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Answer 2

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RE:
Open Int and Volume on Options?
What does the column open int and Volume Represent in the options screen?

Answer 3

“Open Interest” is the number of option contracts that exist. “Volume” is the number of option contracts traded.

To the best of my knowledge, every time open interest and volume are displayed along with current quotes for an option, the open interest figure represents the number of contracts that existed at the beginning of the trading day, while the volume figure represents the number of contracts traded during the day.

To see how these numbers change and are reported, let’s go through the first trades of a new option, January 25 calls for Wanda’s Hemp and Opium importers, symbol WHO ME.

On the first day the option is available, it will start with

Volume 0
Open interest 0.

At 10:30 that day Andy buys 25 contracts, sold buy Brenda:

Volume 25
Open interest: 25 (but still reported as 0 for the rest of the day).

At 2:00 that day Cathy buys 10 contracts, sold by Don.

Volume 35
Open interest 35 (but still reported as 0 for the rest of the day).

There are no other trades for the option that day.

The second day will start with

Volume 0
Open interest 35

At 11:00 Ed buys 20 contracts form Fran.

Volume 20
Open interest 55 (but still reported as 35 for the rest of the day.

At 1:30 Andy sells the 25 contracts he bought the previous day to George

Volume 45
Open interest 55 (but still reported as 35 for the rest of the day).

Open interest did not change because existing contracts were sold so no new contracts were created.

There are no other trades for the option that day.

The third day will start with

Volume 0
Open interest 55.

At 9:45 Cathy sells the 10 contracts she bought the day before to Fran.

Volume 10
Open interest 45 (but still reported as 55 for the rest of the day).

Since both the buy and the seller were closing positions, those contracts no longer exist and open interest is decreased by the number of contracts.

At 12:30 George informs his broker that that he wants to exercise the 25 contracts he owns. The actual exercise/assignment process does not take place until after the market has closed so this has no impact on volume or open interest for the day. However, the next day those contracts will no longer exist, so open interest will be decreased by 25 contracts the next day.

The fourth day will start with

Volume 0
Open interest 20.