The option chain is a list of all available option contracts for a stock or an index. It displays all call and put options contracts with details such as expiration, strike price, volume, and price in a single frame. The strike price is at the center, and all data pertaining to calls and puts on the same strike are presented next to each other. Normally, the calls are on the left side of the option chain, and the puts are on the right side of the option chain.
Traders use the option chain to understand the dynamics and direction of price movements. It also helps to identify which options contracts are liquid and which are illiquid. An option chain provides a trader with the following information and data:
OTM, ITM, ATM Calls & Puts | Listing of options & their prices | ✅ |
---|---|---|
Option Greeks | Help predict price movements | ✅ |
Max Pain | Helps predict expiry level. | ✅ |
OI, OI change, OI charts, IV | Understand market sentiment | ✅ |
India VIX | Measures IV of NIFTY 50 | ✅ |
PCR by Strike Price | Decide which strike price to use. | ✅ |
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