How to read Option Chain?
Option Types - There are two types of option contracts - Call, and Put. Premium of Call options increases with the increase in price of the underlying, while the premium of the Put options decreases with the increase in price of the underlying, and vice versa.
Strike Price - The price at which buyers and sellers of option contracts agree to exercise the contract. If the Call option expires with the price of the underlying lower than the strike price, it will become worthless. If the Put option expires with the price of underlying higher than the strike price, it will become worthless.
OI - Open interest is the total number of outstanding derivative contracts, such as options or futures that have not been settled for an asset.
LTP - Last traded price of the option contract
IV - IV is an abbreviation for Implied Volatility. A higher IV means the potential for higher swings in prices and low IV means smaller swings. IV doesn't tell you about the direction, whether upward or downward.
Volume - It is the total number of contracts of an option traded in the market. Volume can help you understand the interest of traders in a contract.
Greeks - Option Greeks refer to a set of calculations you can use to measure different factors that might affect the price of an options contract. There are 4 types of option greeks commonly used - Delta, Theta, Vega, Gamma
Delta - It measures the change in price of an option contract with Re.1 change in price of the underlying asset. Value of delta ranges between 0 and 1.
Theta - Theta is the measure of the sensitivity of the option price to the option’s time to maturity. If the option’s time to maturity goes down by one day, everything else remaining the same, the option’s price will change by theta amount.
Vega - Vega measures the sensitivity of an option's price to the volatility of the underlying asset. If the volatility of the asset changes by 1%, everything else remaining the same, the option price will change by Vega amount. An increase in vega generally corresponds to an increase in the option value.
Gamma - Gamma is a measure of the delta’s change relative to the changes in the price of the underlying asset. If the price of the asset changes, the option’s delta would change by Gamma amount.
Illiquid Contract () - The contracts that have not been traded in the last 5 minutes are marked as illiquid contracts. It is indicated by the crossed water droplet icon().
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How do I access Option Chain from Search Results directly?
To access Option Chain of any scrip, simply search for your desired contract or stock and tap on the Option Chain icon. It will redirect you to the Option Chain page.What is an Option Chain? How to use it?
An options chain, also known as an option matrix, is a listing of all available options contracts for a given security. It shows all listed puts, calls, their expiration, strike prices, and Open Interest, Volume, Average Traded Price, and best Ask & ...How to use Option Chain?
There are multiple ways in which clients can use option chains for trading. Some of the ways are - To know the Support/Resistance of the underlying based on OI. Check the OTM contracts that have the highest OI for both Call and Puts. The strike price ...How to activate futures and option ?
Below are the steps which needs to be followed :- 1.Login to Mobile app. 2.Select My reports. 3.Select My profile 4.Select Derivatives Activation. 5.Click on Futures and options ( NSE,BSE,) Segment. 6.You will get two options to activate the segments ...What role IIFL Securities have to play in this ?
IIFL Sec has partnered with Sensibull to enable options trading from IIFL Trading platforms (TT Web and IIFL Markets) to IIFL traders. Traders can view option chain directly for a given scrip and can directly trade from the option chain Investment ...