An option chain, also called an option matrix or option table, is a detailed list of all available options contracts for a specific asset, like a stock or an index. Think of it as a directory showing every possible option trade for that asset.

What information does an option chain display?

Expiry Dates: When the option contracts will expire.
Strike Prices: The set prices at which the asset can be bought or sold if the option is exercised.

For each expiry date and strike price combination, an option chain provides:

Bid and Ask Prices: The highest price a buyer will pay and the lowest price a seller will accept.
Last Traded Price (LTP): The price at which the option was last traded.
Change: The price change from the previous day's close.
Volume: The total number of contracts traded during the day.
Open Interest (OI): The total number of unsettled contracts.
Implied Volatility (IV): An estimate of the asset's future volatility based on the option's price.

Why are option chains important?

Option chains are crucial for options traders because they provide a clear market view, helping to:
Identify trading opportunities.
Analyze market sentiment by comparing Call vs. Put Open Interest.
Compare different strike prices and expiry dates.
Understand the liquidity and pricing of various contracts.

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