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Forums Ask Me Anything Option Chain – OI reduction

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      Nitin Bhatia
      Keymaster

        In Options, buyers have option to close, exercises or let the contracts expire worthless. But Option sellers are obligated -So how seller can close contract – instead seller can square off position by buying and there will new seller. So selling position cannot be closed until closed by buyer. Some time we see – OI are getting negative- so these must be closing position by buyers only. Please narrate. Seems basic question – but meaningful in terms of option chain analysis.

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