What is open interest??
Open interest is the total number of option contracts that are currently open. It is contracts that have been traded, but not yet liquidated by either an offsetting trade, an exercise or assignment. It is hugely important to understand that it is an insight to the liquidity on any particular strike.
A high level of open interest is normally associated with a relatively tight bid/ask and are usually very liquid. A low level of liquidity is unusually associated with low open interest and are normally very wide on the bid/ask.?
To read more:
Here’s how?open interest can be beneficial?to a trader: Open Interest as an Odds Enhancer
A?primer?on open interest for new traders: Options for Newbies – Options Interest