$WAL 15-minute contract open interest increased by 74.12%, with an open interest value of approximately $5.15 million; the price rose 0.91% over the same period.
Let’s use this figure to unpack open interest.
An increase in open interest doesn’t mean money is flowing in: it only indicates that the size of open positions in the contracts has grown. It doesn’t tell us whose money it is or which direction they’re betting on.
When the price is mostly flat while open interest rises significantly, it suggests both sides are adding to their positions. The odds of a larger move afterward are often higher, but the direction is uncertain.
Unusually high readings are often accompanied by greater volatility. At times like these, it’s better to reduce leverage rather than add to it.
Let’s use this figure to unpack open interest.
An increase in open interest doesn’t mean money is flowing in: it only indicates that the size of open positions in the contracts has grown. It doesn’t tell us whose money it is or which direction they’re betting on.
When the price is mostly flat while open interest rises significantly, it suggests both sides are adding to their positions. The odds of a larger move afterward are often higher, but the direction is uncertain.
Unusually high readings are often accompanied by greater volatility. At times like these, it’s better to reduce leverage rather than add to it.