Help understanding open interest change

Discussion in 'Options' started by VIXER328, Sep 6, 2017.

  1. 2rosy

    2rosy

    from your example there's increasing activity in atm options. It would help to know what expiration(s) you're referring to and how has implied vol changed.
     
    #11     Sep 8, 2017
  2. ironchef

    ironchef

    I understand what everyone is saying but intuitively, I would think a sudden increase in option trading activity is an indication of higher interest in the underlying potentially making a big move. As an outsider it is true I cannot tell if the option insiders are bullish or bearish, whether they are long or short, a spread or any combinations, just that all of a sudden there are more interests in the underlying.

    Options activities on stocks making big moves seemed to always increase.

    The $64,000 question is whether this is a leading or lagging signal, whether one can use it to trade and if so how?
     
    #12     Sep 11, 2017