here is my answer. My source is CME website, unfortunately the data of 30.11. wasn't available anymore - but i "guess" the percentage on that day (30.11.) was lower than the following day (01.12.)correct..i think
open interest is of course what it says..how many contracts are open..for every buyer there has to be a seller..so..at close of day..we will have a change in OI..it will either increase..or decrease..depending on the volume traded..but..if the volume traded is high..lets just say 1.4 million contracts..and the OI only changes by + 60,000 contracts..what does that tell us about the ES trading for the day in question ?
don't forget to write down your %s..either guessing or working out !
Why Is The Obvious Not So Obvious?
- Thread starter nysestocks
- Start date
correct..i think
open interest is of course what it says..how many contracts are open..for every buyer there has to be a seller..so..at close of day..we will have a change in OI..it will either increase..or decrease..depending on the volume traded..but..if the volume traded is high..lets just say 1.4 million contracts..and the OI only changes by + 60,000 contracts..what does that tell us about the ES trading for the day in question ?
don't forget to write down your %s..either guessing or working out !
If have no clue if + 60,000 contracts of OI is only a slight increase or a high increase. Lets assume it is a slight increase, but volume is running high. I would assume, that market participants don't trust the current price level and therefore close their positions again at the same day.
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if you were on the CME website did you miss the most important bit of information ?
if + 60,000 is change in OI and 1,400,000 are traded..then surely that means that 1,340,000 contracts were opened and closed in the same day..when i went to school we were taught to do these sums in our heads.. nowadays..if you ask an honours maths student that simple question..they will go for the calculator..wtf..and people wonder what is wrong with the world today..ohh..right..trading..i forgot about that for a moment..where were we
"if + 60,000 is change in OI and 1,400,000 are traded..then surely that means that 1,340,000 contracts were opened and closed in the same day"
That's not exactly right, is it? the only information we get is that today there are +60K contract still open at the end of the day compared to yesterday, it tells us nothing about what happened today...
let's give some examples:
case 1: yesterday there were no open contracts at the end of the day, today 670K were opened and 670K closed during the day, 60K were opened and not closed.
-->Volume for the day= 1,400,000, outstanding contracts at day end is 60K more than yesterday
Case 2: yesterday there were 500K open contracts at the end of the day, today these 500K contract were all closed, then other 560K were opened and not closed, 170K contracts were opened and then closed throughout the day.
-->Volume for the day= 1,400,000, outstanding contracts at day end is 60K more than yesterday.
perception is a bitch...
let me know if my logic is faulty...
That's not exactly right, is it? the only information we get is that today there are +60K contract still open at the end of the day compared to yesterday, it tells us nothing about what happened today...
let's give some examples:
case 1: yesterday there were no open contracts at the end of the day, today 670K were opened and 670K closed during the day, 60K were opened and not closed.
-->Volume for the day= 1,400,000, outstanding contracts at day end is 60K more than yesterday
Case 2: yesterday there were 500K open contracts at the end of the day, today these 500K contract were all closed, then other 560K were opened and not closed, 170K contracts were opened and then closed throughout the day.
-->Volume for the day= 1,400,000, outstanding contracts at day end is 60K more than yesterday.
perception is a bitch...
let me know if my logic is faulty...
Is there a question? Don't want to miss it
of course there is a question..how important the answer is in relation to short term trading is debatable..yet..if nothing else..very interesting !
if i decide to sell 1 ES naked put..provided my broker and account size allows same..then if the ES rises i make money..but it is limited to the premium i have received for selling the put..if the ES falls below the strike price..then i lose money for every tick that is below the strike minus the premium
if i buy the put..i am on the other end..simple..this time it is unlimited gain if market falls..sweet fuk all if market rises..i LOSE premium PAID if the ES futures is near the strike price at expiration..feck..now we have that stupid time = money thing back again
so..how the hell can we make something out of all this OI and volume data..and..does it really matter in relation to what is happening on the charts !!!
whoaaaaa..i never said i was right..or wrong.. remember
look at what i asked..if the change in OI is +60,000 and the Vol traded is 1,400,000..then surely this means that 1,340,000 contracts were opened and closed !
the previous days OI is say 2,400,000..so the new OI is 2,460,000..where are the 1,400,000 contracts gone ?