Open interest indicates the total number of option contracts currently open – contracts that have been opened/traded but not yet liquidated by either an offsetting trade or an exercise or assignment
Open interest = total number of open or outstanding options contracts at the given time.
If a buyer and a seller combine to initiate a new position/contract, then open interest will increase by one contract. If a buyer and a seller both exit a position/contract, then open interest decreases by one contract.
If a buyer or seller passes off their current position to a new buyer or seller, then open interest remains unchanged.
