2007-11-25 00:48:46 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
Open Interest
1. The total number of options and/or futures contracts that are not closed or delivered on a particular day.
2. The number of buy market orders before the stock market opens.
A common misconception is that open interest is the same thing as volume of options and futures trades. This is not correct as demonstrated in the following example:
On Jan 1, A buys an option, which leaves an open interest and also creates trading volume of 1.
On Jan 2, C and D create trading volume of 5 and there are also 5 more options left open.
On Jan 3, A takes an offsetting position and therefore open interest is reduced by 1, and trading volume is 1.
On Jan 4, E simply replaces C and therefore open interest does not change, trading volume increases by 5.
2007-11-25 02:34:33 · answer #1 · answered by Alfred Chew 2 · 1⤊ 1⤋
The number of options that are not squared off. For example if there are 20 calls in the market and 10 puts then the open interest is 10 options.
2007-11-25 00:53:49 · answer #2 · answered by Nirmal K 3 · 0⤊ 1⤋
Open interest refers to the total number of contracts outstanding on a particular asset at any point of time that are not yet offsetted by counter transactions or settled through delivery or payment of cash.
2007-11-25 03:06:53 · answer #3 · answered by viki 2 · 0⤊ 0⤋
A position can be long or short. So with that in mind; Buy to open (buy a put or call as a new position) Sell to open (sell a put or call as a new position) Sell to close (after having a open position in a put or call, you "close" the position by selling it).
2016-04-05 21:26:05 · answer #4 · answered by ? 4 · 0⤊ 0⤋
"Open interest" reflects the total amount of option contracts that have been written and NOT "excercised".
If all the open interest option contracts were suddenly "excercised" then open interest would drop to zero.
2007-11-25 01:18:55 · answer #5 · answered by !!! 7 · 0⤊ 0⤋
Carried over to thenext trading day
2007-11-25 02:48:00 · answer #6 · answered by geeyen 7 · 0⤊ 1⤋