Just wanna say thanks to those who helped me understand how I messed up my last option. I'm new to options and my experience in this sub has been peaceful and enlightening, to say the least.
Going forward, I want to understand somethings that I feel deeply ignorant about. For example:
The OI is on this NIO contract ($5 Call, 1/16/2026) is five times more than other call options from here until February 2026. I was wondering why that is?
The ticker is NIO and there is 100k OI. Most OI from now until January is between 2k and 5k, nearing the current price. There has to be some significance to this date, no? Also, is this an expected price for a contract of this distance from the current price, taking into account calendar date?
Thanks ahead of your contributions to my understanding. I know no one had to answer so I appreciate it.
https://i.redd.it/p2p47inmuvlf1.jpeg
Posted by Bravadette
5 Comments
Large OI on $5 puts, as well
56.5K OI on same date puts.
$5 was the breakout level and it is a natural value (and its multiples) that traders gravitate to.
OI means exactly that…its doesnt say wheather a stock is going up or down. There are those that sell options at the 5 strike making money on Theta hoping a slow decay and there are those buying 5 strikes hoping price moves quickly and not lose value to Theta. Put/Call ratio doesnt mean anything. It just assures you have liquidity if you need to exit. High OI is good for liquidity.
I guess ill open another comments to as to not annoy those who have answered once. But isn’t every month potentially A LEAP? Why this specific date? Seriously 100k seems insanely deep in OI compared to other days.
Reasons are irrelevant. More often than not, no one really knows the reason(s) why a certain option strike price and expiration have high OI except the traders who actually bought or sold the options.