Just saw: $EVAA 1-hour contract open interest increased by 5.36%, with an open interest value of about $21.39 million; price rose 14.89% over the same period.
People often ask how to interpret open interest. Here’s how I see it.
Contract open interest reflects the combined demand for speculation and hedging. Some positions are held simply to hedge the risk of spot holdings.
A new high in open interest is neither bullish nor bearish in itself; it just means more positions are being taken and the battle between the two sides is intensifying.
Sizing positions based on stop-loss distance is much more reliable than going by gut feeling.
#EVAA
People often ask how to interpret open interest. Here’s how I see it.
Contract open interest reflects the combined demand for speculation and hedging. Some positions are held simply to hedge the risk of spot holdings.
A new high in open interest is neither bullish nor bearish in itself; it just means more positions are being taken and the battle between the two sides is intensifying.
Sizing positions based on stop-loss distance is much more reliable than going by gut feeling.
#EVAA