Option Volume & Open Interest | Options Trading For Beginners

Option volume and open interest are two liquidity metrics all options traders should pay attention to before entering a trade.

Volume indicates the total number of option contracts that have traded on that day, while open interest represents the total number of open option contracts between two parties.

In this video, you'll learn about the basics of option volume and open interest, as well as which options tend to have the most volume and open interest, making it easier for you to enter and exit positions. tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.

[peteronuoha]

This is DEFINITELY THE BEST EXPLANATION of options contracts volume and interest !!! I finally get it !! :)

[Mark-pdqk]

Finally someone who explains option basics that are understandable. Thanks for doing a great job!

[cheddarbean]

Extremely concise and helpful, appreciate the guidelines

[KitkatTrading]

Should the OI be zero at 3:58 because now everyone has closed their positions and there is no open active position now? If you mean the net change is -5 then I guess the number should be 0 in the preceding slide (when B and C made the close and open trade)

[luismontiel]

Thank you sir. You explain things so clear

[purpletruth]

Thank you very much for that great explanation!! You definitely know your stuff. 😊

[kmarquez]

Thanks for the video!!
Question: how do I know if the opent Int is a buy a call or sell a call?
Assuming that I want to be where the big orders are and no against them. Thank you!!

[sanbetski]

do you have video on unusual volume activity? thanks and more power!

[toniva]

What does buy 5 contracts to close mean

[amiraslam]

which charting platform you use to find out Volume in 100s and open interest in 1000's ?

[chris-pwjt]

Hi, quick question about volume. Is it expressed in terms of "number of contracts" or "total dollar value of all contracts"? Ive heard you should always make sure there's about 40 times the volume of your position when you open a position, but that doesn't mean much unless i know which they're talking about.
Great stuff, man!

[ChaceBonanno]

6:20 Very interesting. The liquidity's at the 5's

[anujgaonkar]

Is there a way we can find out if open interest has increased or decreased since previous trading day ?

[novadolla]

Are you referring to stock volume or options volume?

[guyredares]

very well explained.
what I don't fully understand is when someone sells an option does it create a new contract or are they selling an existing one? the term 'options writing' sometimes replaces the term 'options selling', is there any difference between them?

[tradeindiaimportexport]

where can i get change in open interest data from'

[rataflaca]

BUT IF OPEN INTEREST IS THE BALANCE OF LEFT CONTRACTS AND VOLUME JUST ADD ALL. THEN VOLUME SHOULD ALWAYS BE HIGHER THAN OPEN INTEREST ? WHY I SEE VOLUMEN MUCH LESS TAHN OPEN INTEREST IN MANY CASES?

[nathanielsmith]

7:20 Can you explain what you mean when you say the 4DTE and 46DTE Options are the "standard monthly expiration cycles"? I am confused by that. What does that mean?

[rataflaca]

HOW CAN OPEN INTEREST BE HIGHER THAN VOLUMEN

[Jacob-pluc]

does volume and open interest decrease when the market is closed. iv looked everywhere online and cant find an answer