I’ve been looking into open interest lately for options trading. Not sure if it’s worth the effort to track.
Anyone here actively monitor open interest? Curious about your experiences and if you’ve found it helpful in making decisions.
Maybe I’m overthinking it, but I feel like I’m missing out on potential insights.
Been tracking open interest for a few months now. It’s handy for spotting potential big moves, especially around earnings.
Not a game-changer, but adds another layer to my analysis. Helps with timing entries sometimes.
Wouldn’t sweat it too much though. Price action and your own strategy are still the main drivers. Open interest is just a nice-to-have tool in the kit.
I’ve dabbled with open interest tracking, but found it wasn’t worth the hassle for my style.
Last month, I ignored a spike in OI on a USD/JPY option and missed a big move. Painful lesson.
Now I glance at it occasionally, but focus more on price action and my gut feeling. Keep it simple, ya know?
Open interest can be useful, but don’t get too hung up on it. I’ve found it most helpful for gauging overall market sentiment and potential liquidity. Big spikes in open interest sometimes hint at institutional activity. But it’s just one piece of the puzzle.
Focus more on price action, support/resistance levels, and your own risk management. Those factors will impact your trades far more than open interest alone. If you’re making consistent profits without tracking it, you’re probably not missing much. Keep your strategy simple and stick to what’s working for you.
Open interest data:
• Shows market participation
• Indicates liquidity
• Signals trend strength
Useful supplement to price analysis. Not critical for all strategies. Backtest to determine value for your approach.
Tracked OI for 6 months. Noticed it spike before big moves sometimes. Helps spot trends, but not crucial. Price action still more important for my trades.