ΔOI is our main feature on this platform and this feature gives you the entries and exits of the big money and the quantity they have taken.
What is ΔOI?
It just simply presents the Open Interest changes in a stock/index instrument on different time intervals say 5 min and 10 mins.
What does the data in the table tell me?
We will go column by column in the image below to be very clear.
The columns and what they say
“Date” – this specifies the date of the activity that you see in the other columns.
“Time” – this specifies the time of the activity i.e. when it happened?
“Open” – You can relate this with the “open” of a 1min/5min/10 minutes candle respectively based on the interval you select.
“High” – You can relate this with the “high” of a 1min/5min/10 minutes candle respectively based on the interval you select.
“Low” – You can relate this with the “low” of a 1min/5min/10 minutes candle respectively based on the interval you select.
“Close” – You can relate this with the “Close” of a 1min/5min/10 minutes candle respectively based on the interval you select.
“Cl-Open” – This is the price change (“Close”-“Open”) happened during that respective time 5min/10 min.
If this column has a value of 5.3 this means that the price closed higher by 5.3 points from the “open”
Similarly If column has a value of -5.3 this means that the price closed lower by 5.3 points from the “open”
“Entry/Exit price” – This is the average price at which the positions were added/closed during this interval.
For example there was a long buildup then at what price these longs added? you can find that price in this column. Similarly you can find the exit price where there are exits.
“OI” – This indicates the open interest outstanding at that point in time mentioned in the “date” and “time” columns.
“Chg in OI” – This is the number of contracts added/reduced and is the most recent change in the open interest from the immediate previous outstanding open interest.
“Action/Interpretation” – This presents you the interpretation of what happened during the time interval presented and has four possible activities as follows
“Long buildup” – This means that there were long positions added during this period
“Short buildup” – This means that there were short positions added during this period.
“Longs exiting” – This means that there was profit booking by people who added longs earlier.
“Shorts exiting” – This means that there was profit booking by people who added shorts earlier.
Now that we have looked at each column in detail, let’s see what’s the best way to look at this data
- At the first glance you will have to look at “Action/interpretation” column to just know what happened during that time.
- Next is you have to look at Entry/Exit price so that you know at what price this activity happened.
- And Finally you have to check the size of the positions which is in “Chg in OI” column to know how many contracts got added or how many contracts have been squared off.
In Essence by seeing this data, you will know the How many contracts are added/reduced and at what price and what time?
We hope we have made it clear enough, if not see this image and the accompanying notes to verify if you have understood.
In the image above you can observe the following.
At row 3 there was an addition on short side 3500 quantity at an avg price of 153.588
At row 6 you can see some longs booking profits, 3340 quantity at an avg price of 155.205
At row 8 you can see some long buildup of 520 quantity at an avg price of 145.828
At row 9 you can see some shorts exiting of 3080 quantity at an avg price of 145.019.
Also worth noting is to know what sizes can influence the movement of a particular stock or index you will learn more about that once you start looking at the data live.