When both an option’s price and Open Interest (OI) are increasing continuously, it usually signals strong bullish or bearish sentiment, depending on the type of option (Call or Put):
For Call Options:
Price increasing + OI increasing = Bullish sentiment
- Traders are buying call options, expecting the underlying asset to rise.
- Indicates confidence in upward price movement.
For Put Options:
Price increasing + OI increasing = Bearish sentiment
- Traders are buying puts, anticipating the underlying asset will fall.
- Shows fear or negative outlook.
What This Combo Suggests:
- Increased price shows strong demand.
- Rising OI means new positions are being added, not just squaring off.
- Together, it implies:
- New money is flowing into that direction (Call/Put).
- Momentum is building up in that trend.
- Trend is likely to continue, at least in the short term.
Below options showed a trend of Strong Bullish in last 5 days. Investors can study further to understand the future movements of these options and take respective positions.
