Exiting of open interest of call options
Call options are an important tool in the financial market, allowing investors to profit from the rise in the price of an underlying asset. Open interest refers to the total number of outstanding contracts for a particular option. When traders exit their positions in call options, it can have significant implications for the market. Let’s explore the exiting of open interest of call options and its effects.
Understanding Open Interest
Open interest represents the total number of contracts that are still open or not yet closed or exercised. It provides valuable information about the liquidity and popularity of a particular option. When open interest is high, it indicates active trading and investor interest in that option. Conversely, low open interest … Read the rest