Trading With Open Interest by John Boere
ARTICLE SYNOPSIS ...Trading With Open Interest by John Boere
Analyzing the open interest of equities
can provide insight into the direction of
the market. Find out why the expiration
price is being manipulated, how it can
be calculated, and how you can trade it.
Open interest is the number
of open contracts
of a given option series.
An open contract
is one that is not exercised,
closed, or expired.
One unit of open interest represents
two parties: a buyer (long) and a seller
(short). Open interest increases when a
buyer opens a long position and a seller
opens a short position at the same time.
Open interest de...
AUTHOR: John BoereDATE: NOV 2003SUBJECT: Options