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Strategies & Market Trends : Option Trades -- Ignore unavailable to you. Want to Upgrade?


To: NIng Zhao who wrote (971)3/27/1998 1:51:00 AM
From: donss  Respond to of 2341
 
To anyone,
I am new to option trading and I have a question concerning open interest and would like some help from an option savvy trader. To help me better understand OI what would be the resulting open interest if an new option issue starts trading (OI=0), person.A sells 40 call contracts, person.B buys 7 contracts and then person.A buys back 5 contracts. All buys/sales are the same option/strike/expiration.

What is the resulting OI? How did you arrive at the answer?

Thanks in advance,
Don Smith