Why Trading Volume and Open Interest Matter to Options Traders

Additionally, in isolation, open interest might not accurately reflect short-term market fluctuations. It’s most effective with other indicators, such as price action, volume, and technical analysis tools, to build a more comprehensive market view. In commodities markets especially, seasonal and cyclical patterns in supply and demand can impact open interest. For example, energy futures often… Continue reading Why Trading Volume and Open Interest Matter to Options Traders