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Open Interest (OI) Data in Strategy Builder

AlgoTest's Strategy Builder now integrates NSE Open Interest (OI) data directly into the Strategy Builder.
This gives traders a clearer picture of market positioning and helps make more informed decisions while creating or analyzing strategies.

What is Open Interest (OI)?​

Open Interest represents the total number of outstanding contracts (Calls or Puts) that are not yet settled.

  • Rising OI indicates fresh positions being added (long or short build-up).
  • Falling OI indicates positions are being closed (long unwinding or short covering).

Why OI Data is Important in Options Trading?​

  • Market Sentiment: OI combined with price movement helps identify whether positions are being built on the long or short side.
  • Support & Resistance Zones: Strikes with highest OI often act as strong support (PUT OI) or resistance (CALL OI).
  • Identifying Traps: Sudden shifts in OI can signal short covering rallies or long unwinding corrections.
  • Better Strategy Building: Using OI data, traders can align option strategies with the broader market trend.

How to View OI Data in Strategy Builder​

When you open the Option Chain in Strategy Builder, you can view OI data alongside price and Greeks.

  1. Select your instrument (Index or Stock F&O).

The option chain shows Call OI and Put OI for each strike, helping identify where the market participants are concentrated.

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  1. Under the Option Chain, toggle between:
    • Spot / Synthetic FUT as ATM reference.
    • Display choices such as LTP, OI, Greeks.

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  1. Enable Delta & IV, Open Interest, Illiquid Strikes, Near Strikes for detailed analysis.

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  1. This is how it is shown in the strategy builder.

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Large OI build-up at certain strikes signals important support or resistance zones. Traders can use this data to refine entry/exit points for strategies.

Key Takeaways​

  • Use OI with Price Action: OI alone is not enough. Always analyze OI in conjunction with price movement.
  • High OI ≠ Always Reversal: A strike with high OI might still break if fresh positions continue to build.
  • Dynamic Strategy Building: With AlgoTest Strategy Builder, you can instantly visualize how OI positioning impacts your payoff, Greeks, and probability of profit.

By integrating NSE OI Data into Strategy Builder, AlgoTest enables traders to bridge the gap between data and execution, improving both analysis and strategy performance.