Open interest multiples

         Use the open interest multiples question to look for percentage increases in open interest that may signify important trading days.

Example:

         Open interest increased 10% over the prior trading day. (Open interest was 1.1 times yesterday’s open interest.)

Questions from Traders:

         Is a 10% increase in open interest significant? What type of market behavior can be expected following such an increase?

Setting Up the Search:

Click on the parts of the box below where appears for explanations of features.

Answers:

         Our search generated 15 days in which the open interest increased more than 10% over the prior day. Almost always the market had a significant move within a few days of the uptick in open interest. Many times the open interest increase occurred while the market was trading in a narrow range. The open interest jump usually signaled an upcoming breakout of the short term trading range.