@candicejulian
Options open interest concentration by strike can highlight magnet levels where hedging and expiry dynamics may influence underlying price action. Large clusters of OI near particular strikes often prompt market makers to adjust delta hedges as spot moves, effectively creating transient support or resistance. These effects intensify around expiries, when gamma exposure forces dynamic hedging. Predictive utility rises when OI analysis is combined with implied volatility skews, term structure, and liquidity measures; heavy call OI above spot can create cap dynamics as hedgers sell into rallies, while dense put OI below spot may produce cushioning until breached. OI is not a deterministic predictor, but it is a valuable contextual tool for anticipating zones of heightened liquidity demand and volatility.
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