$AIO 1-hour contract open interest increased by 8.08%, with an open interest value of approximately $3.72 million; the price rose 7.4% over the same period.
Let’s use this data to talk about open interest.
When both buyers and sellers open new positions, open interest rises; when both sides close positions, it falls; when one side opens a position and the other closes one, open interest stays the same.
A new high in open interest isn’t inherently bullish or bearish—it simply means more positions are being placed and the two sides disagree more strongly.
Sizing positions by working backward from where you’ll place your stop-loss is much more reliable than going by gut feel.
Let’s use this data to talk about open interest.
When both buyers and sellers open new positions, open interest rises; when both sides close positions, it falls; when one side opens a position and the other closes one, open interest stays the same.
A new high in open interest isn’t inherently bullish or bearish—it simply means more positions are being placed and the two sides disagree more strongly.
Sizing positions by working backward from where you’ll place your stop-loss is much more reliable than going by gut feel.