Glossary

Open Interest (OI)

By Rohan Fernandes, Founder · Updated 2026-08-21 · Educational reference, not investment advice

Open interest is the number of option contracts outstanding at a strike and expiration, counted once per long-short pair. Together with daily volume and quote width it forms the liquidity screen that decides whether a theoretical trade is tradeable.

High open interest correlates with tight quotes and orderly exits; thin open interest means any exit negotiates with a market maker holding all the leverage. Liquidity floors, minimum OI and volume on the short strikes plus a quote-width ceiling, are enforced per wing on multi-leg structures, judged by the weakest leg, since closing a spread requires trading all of it. OI updates once daily, so intraday volume carries the fresher signal of the two.

Educational reference. Options Scanner is a software tool. It is not a broker-dealer, an investment adviser, or a fiduciary, and nothing on this page is investment advice or a recommendation to buy or sell any security. Options involve risk and are not suitable for every investor; read the Characteristics and Risks of Standardized Options before trading. Examples use hypothetical numbers for illustration only.