Combined Open Interest

 What is Combined Open Interest?

The overall open interest of both call options and put options are tracked using the combined Open Interest function.

The number of contracts that are open or active in the market is indicated by open interest. Open interest rises when new contracts are added, and it falls when contracts are squared off.



The term "total CALL open interest" refers to the total number of CALLs outstanding at each strike price. The term "total PUT open interest" refers to the total number of PUT contracts outstanding at each strike price.

Uses of Total call OI and Total Put OI


Total call OI and Total Put OI in the Combined open interest feature help in determining the strength of price movements and market sentiment. Market bearishness is indicated if CALL OI exceeds PUT OI because traders write CALL options when they anticipate a decline in the market.



As traders write PUT options when they anticipate the market to rise, if PUT OI is higher than CALL OI, the market is bullish. It helps in trend continuation and prevents erroneous breakouts. You can check Crossover in CALL OI and Put OI. Total call OI and Total Put OI suggest that the trend is becoming stronger.

How to use Combined OI in Intraday Screener?

In the intraday screener select Combine OI. You can able to view both line and bar charts. This feature helps you in trend confirmation and avoiding false breakouts. In the above image at 9:30, AM NIfty is falling and at the same time, CALL OI increasing and Put OI is decreasing which indicates bearishness, so it is giving further confirmation to the trend to move lower.

For suppose CALL OI decreases and Put OI increases while Nifty is moving lower, then there is a chance of false breakdown and at any time you may see a reversal to the upside. We need to avoid such types of trades.

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