Open interest

Open interest (also known as open contracts or open commitments) refers to the total number outstanding of derivative contracts that have not been settled (offset by delivery).

For each buyer of a futures contract there must be a seller. From the time the buyer or seller opens the contract until the counter-party closes it, that contract is considered 'open'.

Use of Open Interest in Technical Analysis

Many technical analysts believe that a knowledge of open interest can prove useful toward the end of major market moves. For some option traders, open interest indicates the intensity of trading in a financial instrument. If open interest increases suddenly, it is likely that new information about the underlying security has been revealed, which may indicate a near-term rise in the underlying security's volatility. However, neither an increase in volatility nor open interest necessarily indicate anything about the direction of future price movements. A leveling off of open interest following a sustained price advance is often an early warning of the end to an uptrending or bull market.

Open

O or OPEN may refer to:

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Options strategies

Option strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options' variables. Call options or bullish options give the trader a type of contract or right to buy that particular stock at that options set price. Put options or bearish spreads, obligate the trader to a contract to sell that stock at that set price. This is often done to gain exposure to a specific type of opportunity or risk while eliminating other risks as part of a trading strategy. A very straight forward strategy might simply be the buying or selling of a single option, however option strategies often refer to a combination of simultaneous buying and or selling of options.

Options strategies allow to profit from movements in the underlying that are bullish, bearish or neutral. In the case of neutral strategies, they can be further classified into those that are bullish on volatility and those that are bearish on volatility. Traders can also profit off time decay when the stock market have low volatility as well usually measured by the Greek called Theta. The option positions used can be long and/or short positions in calls and puts.

Person of Interest

A person of interest is someone involved in a Criminal investigation who has not been arrested or formally accused of a crime.

Person of Interest or A Person of Interest may also refer to: