Open Interest vs Volume

Distinguish option trading volume from open interest and check liquidity without assuming direction.

Open Interest vs Volume is a 4-page PDF field guide. Contract activity, outstanding positions and liquidity checks.

• Volume is today's activity: It counts contracts traded during the session, subject to vendor timing and corrections.

• Open interest is outstanding: It is generally updated after clearing and does not show only new bullish positions.

• The comparison is contextual: Volume above prior open interest can flag activity but not whether trades opened, closed or hedged.

• Execution data still needs context: Strike, expiration, price, spread, stock move and catalysts all matter.

Action checklist: Confirm data timestamp; Compare the same contract; Check prior-day open interest; Review execution near bid, ask or midpoint; Look for multi-leg relationships; Label identity and intent as unknown.

Public options data usually cannot establish beneficial owner or trade motive.