Most Asked
My Account
Stocks, F&O, IPO & MTF
Payments & Withdrawals
Mutual Funds
FDs
US Stocks
What are option chains?
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.