What is an Option Chain? How to use it?

What is an Option Chain? How to use it?

  1. An options chain, also known as an option matrix, is a listing of all available options contracts for a given security.
  2. It shows all listed puts, calls, their expiration, strike prices, and Open Interest, Volume, Average Traded Price, and best Ask & Bid price for a single underlying asset within a given maturity period.
  3. The chain is categorized by expiration date and segmented by calls vs. puts.
  4. You can see Option Chain by clicking on Chain button (marked in the image below) from the details page of the scrips for which option contracts are available.

You’ll see LTP, OI, and Strike Price for all the option contracts available for this company. 

Click on a particular contract from this option chain, you’ll see ATP(Average Traded Price), Bid Price & Qty, Ask Price & Qty,  and Volume traded.

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