Newbie Question

Can someone explain "open interest" to me, what it means
and the importance of it.

Thank You.

 

http://www.optionstradingsystem.com/options_open_interest.asp

This gets you a good start.

 

Open Interest is basically one of many fancy terms used by fundamental analysts that gives them a number which they can contrast with time and other issues to create vibrant graphs and piecharts that fool the investing public into believing in Santa Claus..

also

"The total number of futures contracts or option contracts that have not yet been exercised, expired, or fulfilled by delivery. "

-qwik