Open Interest Analysis is an advanced trader's tool that allows you to monitor not only the current value of open positions, but also the changes compared to previous trading sessions. With its help it is possible to estimate the market optimism on the underlying asset and the number of option contracts that traders have in their hands. To start analyzing open interest, select an underlying asset such as BTC or ETH so that we can load the data.

Explaining the aggregated view:

You can choose between an aggregated view of OI analysis and an advanced view of OI analysis. The only difference is that the advanced view shows OI across exchanges. By aggregated view, we mean that we group options by strike, expiration and contract type (Deribit, Binance, ByBit, OKX and CoinCall only). To calculate Open Interest metric, we sum the values across all relevant contracts. This approach simplifies the process of analyzing how trader interest is distributed in the options market.

How to change the view:

If you want to analyze open interest across exchanges, simply change the view using the "View" button.

So by looking at open interest, we can get an idea of how many people are trading options on a particular underlying asset, which also tells us how liquid the market and how easy it will be to get in and out of positions. There are several standard ways to analyze the market using open interest:

1. A simultaneous rise in OI and price indicates a fairly strong uptrend. However, it is worth remembering that this happens because whales and market makers, who most often hedge their positions near the central strike, are forced to buy the underlying in the spot market to balance the portfolio delta.

2. Price growth with decreasing OI indicates market weakness, but this phenomenon usually does not have a long-term character.

3. If the price falls while open interest is rising, this indicates that traders are selling contracts and closing positions. If there is a simultaneous drop in price and OI, we can see a rather strong downtrend, which can be identified as uncertainty about the future market behave.

We also recommend analyzing the open interest charts by expiration date and distribution by strike. Here you can find information about which strikes and expirations traders prefer (the most active) and which of the instruments (call or put) they are using at the moment. It is important to note that the crypto market never closes, so all the data you see on the charts is for the last 24 hours.