Open interest in ¥60,000 Nikkei 225 puts surged, highlighting positions taken in preparation for a break below the key level. As of the end of October, open interest for the two nearest contract months stood at a combined 26,357 contracts.
In the options market, open interest in puts, which give holders the right to sell in anticipation of future share-price declines, is increasing. Open interest in puts on the Nikkei 225 with a ¥60,000 strike price has grown substantially.
As of the end of October, open interest in ¥60,000 puts for the two nearest contract months totaled 26,357 contracts, an increase of approximately 20% over three weeks.
The ¥60,000 puts expiring in November totaled 8,878 contracts, while the December contracts totaled 17,479. These positions are viewed as protection against an approaching break below the key level.