Glossary / Open interest

Open interest

The number of outstanding options contracts at a strike; concentrates dealer hedging.

Open interest is the number of outstanding (not-yet-closed) options contracts at a given strike. Large open interest concentrates the dealer hedging that must occur around that strike, which is what creates gamma walls and flip levels.

More terms: Gamma wall · Delta neutral · Gamma · 0DTE options · Dealer hedging · Call wall

Read the articles →