Another way to use open interest in options trading is to view it as a guide to finding ... It is best used in conjunction with other indicators to make well-informed investment decisions.

Option strike prices are usually round-number levels that tend to serve as support or resistance, as buyers view pullbacks ... of call open interest can define a point of extreme market optimism ...

Short interest can be a useful sentiment indicator ... shares at the stock’s average daily trading volume. For our purposes, we typically view any reading above 5 as a sign of heavy pessimistic ...

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating ...

Source: web.strike.money The Open Interest Put-Call Ratio (PCR) is a short-term indicator that can become oversold near market bottoms that last for several weeks. In a bullish market ...

Extreme readings on a sentiment indicator may cause some traders to take a contrarian view; for example ... the future direction of interest rates, for example. Market Sentiment Indicators ...

A stock's short interest is the percentage of its floating shares that are currently sold short—and an indicator of how bearish the market is about that stock in general. The motto of the stock ...