How to chart options open interest by strike
Quick answer
Chart options open interest by strike by plotting call OI and put OI as stacked bars at each strike price. High OI concentrations reveal where large institutional positions are hedged, creating support and resistance levels. Calculate max pain — the strike where maximum options expire worthless — using the formula that minimizes total intrinsic value across all strikes.
Why does options open interest by strike matter for trading?
Open interest — the total number of outstanding option contracts at each strike price — is one of the most powerful but underutilized indicators in options analysis. While most traders focus on price and volume, open interest reveals where large institutional positions are concentrated, which in turn affects how the underlying asset moves.
Think of it this way: open interest shows you where the battlefield is. High OI at a specific strike means dealers and institutions have significant hedging exposure there. When the underlying approaches that strike, delta hedging flows can amplify or dampen the move.
What is the difference between open interest and volume?
Volume tells you how many contracts traded today. Open interest tells you how many contracts are currently outstanding (opened but not yet closed or exercised).
High volume + increasing OI = new positions being opened. This is conviction — traders are making new bets.
High volume + decreasing OI = positions being closed. This is profit-taking or stop-loss activity.
High OI + low volume = established positions that aren't being traded. These are the 'walls' that affect price movement.
What is max pain in options and how is it calculated?
Max pain is the strike price where the maximum number of options expire worthless — causing the maximum loss for option holders and maximum profit for option sellers (typically dealers and market makers).
The theory: because dealers have sold options at various strikes, they have an incentive to hedge in ways that push the underlying toward max pain as expiry approaches. This creates a gravitational pull.
To calculate max pain: for each possible settlement price, sum the total intrinsic value of all outstanding calls and puts. The settlement price that minimizes this total value is max pain.
How do I build an open interest chart?
Upload any options chain CSV with columns for strike, call_oi, and put_oi (many brokers export this format). Quadesto renders a stacked bar chart with:
• Call OI (green) and put OI (red) side by side at each strike
• Max pain highlighted with a vertical line
• Current underlying price marked for context
• Optional volume overlay to see where today's activity is concentrated
The chart is interactive — hover any bar to see exact OI numbers, and zoom in on specific strike ranges.
How do I read an open interest chart for trading signals?
Look for strikes with outsized OI relative to neighbors — these are 'walls.' A massive call wall above the current price often acts as resistance. A massive put wall below often acts as support.
The put/call OI ratio at each strike reveals directional bias. Strikes dominated by puts suggest hedging activity; strikes dominated by calls suggest speculative interest.
Gamma exposure (GEX) analysis extends this further: by multiplying OI by the option's gamma, you can estimate the dealer hedging flow at each price level. Quadesto's computation engine can derive this.