A quick note: Open interest in the $SOPH 15-minute contract rose 34.51%, with an open interest value of about $954,000; over the same period, the price fell 3.14%.
People often ask how to interpret open interest. This is how I understand it.
Open interest and trading volume are two different metrics: trading volume shows how much was traded over a period of time, while open interest shows how many positions are still open at the moment.
A new high in open interest is not inherently bullish or bearish; it simply means more positions have been placed and the disagreement between the two sides has intensified.
Comparing several metrics with each other is more reliable than looking at just one, but even a larger number of indicators cannot provide a definitive conclusion.
#SOPH
People often ask how to interpret open interest. This is how I understand it.
Open interest and trading volume are two different metrics: trading volume shows how much was traded over a period of time, while open interest shows how many positions are still open at the moment.
A new high in open interest is not inherently bullish or bearish; it simply means more positions have been placed and the disagreement between the two sides has intensified.
Comparing several metrics with each other is more reliable than looking at just one, but even a larger number of indicators cannot provide a definitive conclusion.
#SOPH