Options Open Interest and Bias
Options Open Interest and Bias

Chapter 7

Options Open Interest and Bias

As discussed in prior chapter, the options open interest data is studied from option sellers/ option writers’ perspective, because they are the traders/participants with deep pockets, as option selling involves taking unlimited risk and limited reward, i.e. restricted to option premium and also exchanges stipulate an initial margin requirement. With such a skewed payoff structure, it suggests that they know the market better (probably a better market bias) to assume a negative risk reward.

The options open interest tool of Quantsapp gives a perspective to option traders about open interest across different strike prices of Nifty or F&O stocks, whichever would be the specific underlying. The dynamics of open interest such as option unwinding can be studied using the open interest tool of Quantsapp.

As studied earlier, the red bars indicate put option open interest, while green bars indicate call option open interest.

The dark green shade, on the green bars indicates addition of open interest in the specific call option. Similarly dark red shade indicates addition of open interest in specific put option.

Snapshot showing open interest addition and unwinding in both calls and puts.

Put option unwinding on the template is represented by hollow red bar, simultaneously hollow green bars are indicated by call option unwinding.


Quantsapp’s open interest tool is a strong enabler for traders, to dynamically spot unwinding in options (call or put).


NIFTY was trading at 18080 on Sep 13, 2022, afternoon, Nifty open interest: 75L shares added on 18000 PE & 21L shares added on 17900 PE, visible from filled bars of dark red colour.

Around 16L shares unwind from 17900 CE & 18000 CE with CE OI added on higher strikes, where unwinding is observed by hollow green bars.

Analyse changes in Options Open Interest levels here:


Open interest snap shot for Nifty showing the open interest pattern across strike prices.
Open interest snap shot for Nifty exhibiting the open interest pattern across a lot more strikes, after having zoomed out.


How do you analyse changes in OI levels for options?

Quantsapp’s Open interest tool enables traders to track changes in OI from specific date and time.

How can an option trader identify unwinding in an option?

Quantsapp’s open interest tool enables option trader to identify unwinding using a hollow green bar
for calls and hollow red bar for puts across different strikes for different F&O stocks.