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Option Chain
Frequently Asked Questions

An option chain, also known as an option matrix, is a listing of all available option contracts, both puts and calls, for a given security. It shows all puts, calls, strike prices, last traded prices (LTP), and pricing information for a single underlying asset within a given maturity period.

The option chain matrix is most useful for the next trading day. Trading volume, or the number of contracts that change hands in a given day, indicates how much liquidity there might be for any given option. Open interest measures the total number of options outstanding on each strike and maturity, allowing you to gauge the scale of market commitment.

The Option Chain displays strike prices, call and put option prices (LTP), open interest (OI), trading volume, implied volatility (IV), Greeks (Delta, Gamma, Theta, Vega), and build-up indicators. This comprehensive data helps traders analyze market sentiment and make informed trading decisions.

To read an Option Chain, focus on strike prices (middle column), call options (right side), and put options (left side). High open interest and volume at specific strikes indicate strong support or resistance levels. Compare call and put OI to gauge market sentiment. High call OI suggests bullish sentiment, while high put OI suggests bearish sentiment.

Call options (CE) give the right to buy the underlying asset at the strike price, while put options (PE) give the right to sell. In the Option Chain, calls are typically displayed on the right side and puts on the left side of the strike price. Calls are used for bullish strategies, while puts are used for bearish strategies or hedging.