Support and Resistance Many day trading methods utilize support and resistance price levels for entry, stop loss, and take profit. Support is a price level that acts as an imaginary floor preventing the price of the stock from falling. On the opposite, resistance is a price level that acts as an imaginary ceiling preventing the stock from rising. Price charts provide historical levels of support and resistance. Often it happens that these levels become obsolete as a new trading day is started. However, there is a relatively simple way to glean into the future based on the options open interest (OI). Options Open Interest Related Support and Resistance Large OI in short-dated Calls acts as options-induced resistance. As the stock exceeds a strike with heavy OI, the market players begin to unwind their positions, thus applying pressure to the downward. Similarly, large OI in short-dated Puts acts as options-related support. Be aware that options-related support and resistance don't f