Everything You Wanted to Know About Options but Were Afraid to Ask
IBKR Podcasts
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How to Calculate Open Interest
Open interest is essentially just a measure of the total number of open contracts carried over from the close of the previous business day for that contract. The only time when open interest is going to increase is if the buy on the buy side is an opening trade and the sell side is anopening trade. If the buyer and the seller are both closing a pre-existing option contract then the open interest will decrease by one, says Boulden.
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