I’ve been tracking both open interest and volume for options, but it’s getting overwhelming.
Not sure which one gives better insights for my trades. Anyone here focus on just one?
Wondering if I’m overthinking this or if there’s a clear winner between the two metrics.
Both have their uses, but volume’s more crucial day-to-day. It shows you real-time action and liquidity. Open interest is good for spotting longer-term trends, but it updates slowly.
I mainly watch volume. Spikes can signal big moves coming. Low volume? Be careful, might get stuck in a trade.
Don’t overthink it though. Price action’s still king. These are just tools to back up what you see on the chart. Keep it simple - focus on a few key indicators that work for your strategy. Overcomplicating just leads to analysis paralysis.
Trading both metrics can be a headache. Personally, volume’s been the game-changer for quick trades.
Caught a nice AAPL options play last week just by spotting an unusual volume spike. Open interest is useful for longer-term stuff, but day-to-day, volume’s where it’s at.
Still learning though, and every trade’s a lesson. What works for one might not work for another.
I used to obsess over both metrics, but it burned me out fast.
Now I mainly watch volume for quick trades. Last month, I spotted a volume spike on SPY options and rode a 2% move for a sweet 65% gain.
Open interest helps me gauge overall market sentiment, but for day-to-day decisions, volume’s my go-to. It’s saved me from many illiquid traps.
Volume: real-time liquidity indicator.
Open interest: longer-term trend insight.
Focus on volume for day trading. Spikes signal potential moves.
Combine with price action for best results. Avoid overcomplicating analysis.
Volume’s my main focus. Helps spot liquidity fast. Made 40% last week on a TSLA options trade using volume spikes. Open interest is secondary for me.