Options Open Interest Depth

Options open interest depth measures the total volume of open contracts at various strike prices across the options market. This data reveals the concentration of market expectations and where major support or resistance levels may lie.

High open interest at specific strikes can act as a magnet for price, as market makers hedge their exposure to these levels. By analyzing this depth, traders can anticipate potential price "walls" and areas of high liquidity.

It provides a window into the strategic positioning of institutional players and how they are hedging their portfolios. Understanding this depth is essential for navigating the complex interplay between options markets and underlying asset price discovery, especially during expiry events.