Open Interest (OI) Analysis
Analyze Call OI and Put OI concentration to identify potential market liquidity zones.
NIFTY 50 Strike-wise OI Distribution (Mock Visualizer)
Green bars represent Call Open Interest (Potential Resistance). Red bars represent Put Open Interest (Potential Support).
Key Concepts in Open Interest Analysis
Open Interest represents the total number of outstanding derivative contracts that have been entered into and not yet settled or expired.
1. Highest Call Open Interest
Option sellers (writers) often commit significant capital to write call options at higher strike prices. When a strike price accumulates massive Call OI, it often acts as an overhead resistance area because call writers defend their positions.
2. Highest Put Open Interest
Conversely, when a strike price accumulates massive Put OI, option writers who have sold put options stand to benefit as long as the price stays above that strike. Consequently, highest Put OI strikes often act as potential support levels.
3. Change in Open Interest (Chg in OI)
Tracking fresh addition or unwinding of contracts during market hours helps market participants gauge whether buyers or writers are actively building new positions.
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