Options Open Interest: What Most Traders Get Wrong - IBKR Podcast Ep. 435

Options open interest can reveal valuable information about market activity, but what does it actually tell traders? Jeff Praissman is joined by Market Chameleon’s Dmitry Pargamanik and Will McBride to explore how open interest differs from trading volume, what unusual activity may signal, and the common misconceptions traders should avoid. Show Notes: https://www.interactivebrokers.com/campus/podcasts/options-open-interest-what-most-traders-get-wrong/ Campus Home:  https://www.ibkr.com/campus/ Traders’ Insight:  https://www.ibkr.com/campus/news Traders’ Academy: https://www.ibkr.com/campus/courses Cents of Security: https://www.interactivebrokers.com/ca... IBKR Quant:    https://www.ibkr.com/campus/quant Cents of Security: https://www.ibkr.com/campus/category/... IBKR Podcasts:  https://www.ibkr.com/campus/podcasts IBKR Webinars:  https://www.ibkr.com/campus/webinars IBKR API:     https://www.ibkr.com/campus/api Student Trading Lab: https://www.ibkr.com/campus/stl Open an account at Interactive Brokers: https://ndcdyn.interactivebrokers.com/Universal/Application?utm_source=podYTAcc&utm_ibsource=podYTAcc Disclosure: Interactive Brokers The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice. Disclosure: Market Chameleon The information provided on MarketChameleon is for educational and informational purposes only. It should not be considered as financial or investment advice. Trading and investing in financial markets involve risks, and individuals should carefully consider their own financial situation and consult with a professional advisor before making any investment decisions. MarketChameleon does not guarantee the accuracy, completeness, or reliability of the information provided, and users acknowledge that any reliance on such information is at their own risk. MarketChameleon is not responsible for any losses or damages resulting from the use of the platform or the information provided therein. The 7-day free trial is offered for evaluation purposes only, and users are under no obligation to continue using the service after the trial period. Disclosure: Options Trading Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by going to the following link ibkr.com/occ. Multiple leg strategies, including spreads, will incur multiple transaction costs.