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What Is Option Volume & Open Interest? (Yiddish)
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In this lesson, I explain Option Volume and Open Interest — two of the most important concepts for every options trader to understand. You’ll learn: - What Volume means in options trading - What Open Interest is and how it affects liquidity - Why both matter before you place a trade - Simple rules of thumb to avoid costly mistakes Remember: Options trading is risky. Most people lose money in options. If you are not 1000% clear, do not touch options. This video is for educational purposes only. Subscribe at chaimekstein.com/blog to get future lessons by email.
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Auto-generated transcript. Not time-synced to the video.
My name is in lesson
options volume and open interest.
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and options trading in risk.
You have no business
options. So with a test and the lesson
is for educational purposes only
volume. What is volume? Volume basically
mindful options contracts strike price
expiration date exactly days.
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>> interest mention
trait of specific contracts. So
liquidity
open interest total from the open
contract
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exercised expired
day
contract
the liquidity in the [music] interest
and they strike in the expiration
option or open interest
Open interest.
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Low volume, the low open interest.
So
high value, high open interest but low
volume is
high volume and low open interest.
SPY spy is the most liquid ETF of the
stock market
price
and open interest.
Okay.
in open interest,000
liquidity.
So, as a rule of thumb,
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liquid
spy
open interest
open interest avoid strike prices
open interestity
in the market
to begin with. So
volume is active
open interest.
So the bottom line volume
open
available in the market is often in the
market. So
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ask
the spread taxi
liquid. If you ask any other questions
of this subject or there any other
subject in the financial markets, please
tag us in the comment section and
understand what we got from the sessions
and the lesson. Please like and
subscribe to the channel and
subscribe.com/blog.
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