Options Open Interest

Options open interest is the total number of options contracts that are currently active and have not been exercised or expired. Similar to futures, high open interest in options indicates significant market participation and potential support or resistance levels.

Traders use this data to identify key price points where a large number of contracts are concentrated, which can act as magnets or barriers for price movement. Analyzing the distribution of open interest across different strikes and expiration dates is crucial for understanding institutional positioning.

It helps in predicting potential volatility clusters and market turning points.