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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: hpeace who wrote (974)3/14/1997 5:35:00 PM
From: Rodney Lockhart   of 14162
 
Steve,

I think you may be right. McMillian said open interest didn't differentiate between buyers and sellers. If I open a position by selling 100 contracts and you open a position by buying 100 contracts, open interest would increase 200.

Using the above example, if I had bought 200 and you had sold 100, the market maker would have sold 100 to balance things out. Not sure in this case if open interest would increase by 300 or 400.

Assuming a fair balance between buyer and sellers your 50% look right.

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