【Option Vol/OI Turnover】Description

1.Where to find

Located under Option Details Page

Volume and open interest are two key technical metrics that describe the liquidity and activity of options and futures contracts.

"Volume" refers to the number of contracts traded in a given period, and "open interest" denotes the number of contracts that are active, or not settled.

2.Things to be considered

Scenario 1:

Generally speaking, a rising volume and rising open interest both indicate a liquid market with many buyers and sellers for a particular option. This could be a sign of bullish sentiment if the increase in open interest is being fueled by long positions, or, a bearish sentiment if the increase is being fueled by short positions. Either way, the market shows an unanimous outlook towards one-side.

Scenario 2:

If an option has a high volume and a steady or declining open interest, this indicates a large number of contracts are changing hands and a tension between long-side and short-side. In general such scenario will make it easier for investors to obtain a favorable price.