Focusing on a Trade Process | Trading a Smaller Account | Kevin Horner | 9-20-24

[@richardjudge2322]

Much appreciated Kevin. Take care.

[@tradertalkswebcasts]

Thanks for watching :) ^KH

[@rachida.6827]

Keep it up ll, great content!

[@tradertalkswebcasts]

Thanks for watching! ^KH

[@mauriceplo-tp6ql]

Hi Kevin In a short call MRNA 65/79 Open interest are lower than out the money. What does it mean? EXP Oct 18

[@tradertalkswebcasts]

Hi Maurice...the open interest on a given option contract just speaks to the number of open contracts on the given strike price and expiration period. A deeper ITM contract having greater OI than OTM might just imply that traders of the stock are not expecting a volatile move. Open Interest can give insight into potential expectations but it's not a perfect corollary. Hope that helps Maurice. By the way, did you get to see the segment where I built the scan we discussed at the Market Drive event? I took my notes from our conversation and tried to built the dynamic we talked about. If you missed it, here's the link: kzbin.info/www/bejne/q2ibd6uchq-Cd68 ^KH

[@mauriceplo-tp6ql]

Sorry lower ITM than OTM

[@tradertalkswebcasts]

Ahh...so, if the ITM contracts have fewer OI contracts than OTM, a trader might infer that somebody believes a volatile move is coming. Seems speculative in nature, but OI alone doesn't necessarily give us enough information. ^KH