Options trading is a powerful way to capitalize on market movements, but it requires the right tools and analysis. In this guide, we’ll break down key indicators like Open Interest (OI) , Put-Call Ratio (PCR) , and VIX (Volatility Index) to help you make informed trading decisions. We’ll also explore additional factors like Max Pain, support and resistance levels , and the best indicators to use alongside option chain analysis. 1. Understanding Open Interest (OI) What is Open Interest? Open Interest (OI) represents the total number of outstanding option contracts that haven’t been squared off. It shows the liquidity and market interest in a particular strike price. How to Use OI for Trading? Increasing OI with rising price: Strong bullish trend (new buyers entering the market). Increasing OI with falling price: Strong bearish trend (new sellers entering the market). Decreasing OI with rising price: Weakening bullish trend (short covering). Decreasing OI with falling price: Wea...