In: Finance
What is the difference between the reported Vol of 770 and Int of 39884 for the AAPL 210 CALL option? Make sure to explain Vol and Int.
reported Vol of 770 for the AAPL 210 CALL option means there are 770 call options bought and sold. when an investor buys a call option then there is a dealer or market maker sells that call option. so for every call option bought there is a call option sold. volume shows the activity in the market. the higher the volume reported for a particular call option, the highly popular that call option is. higher volume also shows higher liquidity which is preferred for getting an opposite position in the call option. Volume can only increase.
Int of 39884 for the AAPL 210 CALL option means there 39884 active call option in the market held by traders and investors. it also means that those options have not been either closed, expired or exercised. open interest decreases when an option is either closed, expired or exercised. it increases when new positions have been taken. so open interest can either increase or decrease.