Role of Implied Volatility (IV) and Open Interest (OI)
Implied Volatility (IV): Indicates expected market volatility. Rising IV increases option premiums. Traders buy options during low IV and sell during high IV.
Open Interest (OI): Reflects the number of outstanding option contracts. Rising OI with price indicates strong trend confirmation, while divergence signals reversals.
These metrics help traders assess market sentiment and build informed positions.
Implied Volatility (IV): Indicates expected market volatility. Rising IV increases option premiums. Traders buy options during low IV and sell during high IV.
Open Interest (OI): Reflects the number of outstanding option contracts. Rising OI with price indicates strong trend confirmation, while divergence signals reversals.
These metrics help traders assess market sentiment and build informed positions.
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.