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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Bron-y-aur who wrote (32487)	4/10/1999 1:12:00 AM
From: SMALL FRY	Respond to of 120523

Not a dumb question... it's analogous to the day's volume and the float... trader's in and out... scalping for small profits. The options get churned as much as the underlying... SF

To: Bron-y-aur who wrote (32487)	4/10/1999 5:29:00 PM
From: Chet	Respond to of 120523

Option open interest changes when contracts are closed out. Start with someone buying a call and someone writing a call (short) then the contract is closed by the reverse the short buys it back and the long sells. When you see a decrease in open interest on calls the person who is short sees the stock going up and doesn't want to lose his stock (have it called) assuming a covered call or if uncovered doesn't want to lose money because he has to deliver stock at the market price(higher) and the person who bought the call wants to take a profit. This is how contacts are closed