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When a new expiration week starts in the options market for a particular stock, there is zero Open Interest until traders or stock owners either offer covered calls, naked calls to open or naked puts to open.
You are effectively buying a newly created contract with a right to either buy or sell that stock by expiration date.
If you wrote a covered call on a stock you own and decided you wanted to buy it back and close out your position, it would reduce Open Interest by one contract.
Trading options does not change Open Interest. Only those who created them add to the Open Interest or lower Open Interest.
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Last edited by scho63; 03-13-2021 at 09:05 AM..
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