Next-day receipts: the check that can't be faked

This week's last lesson is the one that separates real positioning from noise.

The tape can't tell you if a big trade was opened or closed. A million-dollar print could be someone buying in, or someone getting out.

Overnight open interest can. If open interest rises by at least half of the day's volume the next morning, the positions were kept. That's a real bet held overnight.

If it doesn't rise, the money churned back out. Yesterday's "huge order" was a day trade, not a position.

You can check it yourself in any broker: look up the contract's open interest the morning after a big card. The Options Recon engine runs the same check on the large orders it finds. It's the receipt that can't be faked.

Use it to learn which cards to trust, and you'll read the board better every week.

The Trading Strategy Guides Team