Analyzing Open Interest (OI) Changes During Quarterly Results
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
Leveraging Derivatives Data in Earnings
Quarterly corporate earnings often trigger sharp price moves. By analyzing Open Interest (OI) build-up alongside price change, traders can identify whether a move is supported by fresh long positions or just short covering. The derivative experts at SP RESEARCHVIA PVT. LTD. share their analysis.
How do you interpret a simultaneous rise in stock price and Open Interest?
This combination signals strong Long Build-up, indicating that buyers are aggressively building long positions in anticipation of a sustained uptrend.
Spotting Short Coverings
A rise in stock price accompanied by a drop in Open Interest indicates that sellers are rushing to close their positions. These rallies can be explosive but are often short-lived.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
Statutory Warning & Risk Disclaimer: Investment in securities market is subject to market risks. Read all related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Content provided on this blog is for informational and educational purposes only.