Comment on Open Interest, MaxPain & Put Call Ratio(PCR)
commented on
18 Apr 2016, 12:15 AM
Your understanding seems fairly correct based on the numbers that you’ve given but again the markets are dynamic and any interpretation drawn from the numbers need not be assumed as conclusive evidence of what the markets may actually do.
There’s a whole module available on Varsity on Open interest which also discusses the connection between OI & Volume. Here’s the link to it: http://zerodha.com/varsity/chapter/open-interest/