What is OI buildup: long buildup, short buildup, short covering and long unwinding?
OI buildup is the reading of price change together with open interest change to tell what traders are doing: price up with OI up is long buildup, price down with OI up is short buildup, price up with OI down is short covering, and price down with OI down is long unwinding.
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What are the four OI buildup types?
Long buildup (price ↑, OI ↑): fresh buying, usually bullish. Short buildup (price ↓, OI ↑): fresh selling, usually bearish. Short covering (price ↑, OI ↓): sellers exiting, a bullish move that can fade once covering ends. Long unwinding (price ↓, OI ↓): buyers exiting, a bearish move that can fade once unwinding ends.
How do traders use OI buildup?
On futures, buildup shows whether a move is backed by new positions. On an option chain, call writing (call OI rising while call prices fall) above the market and put writing below it point to resistance and support.
Where does AOC show OI buildup?
AOC shows OI change and its share at every strike, highlights the largest OI change on each side, and has a future buildup chart that tracks futures price against futures OI through the day.
