Option Chain
What is Max Pain?
Max Pain is the price at which the underlying asset would cause the highest financial loss to the option buyers at the end of contract expiration. Price of the underlying asset tends to gravitate towards this strike price as the expiration date ...
What are OI buildups?
OI buildups are the classification of market sentiment based on Price & OI change of the future contracts for one trading session. It has 4 types - Long buildup - If price of the contract increases with the increase in OI, it means new long positions ...
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 ...
What is OI for option contracts, and how does it work?
Open interest is the total number of outstanding derivative contracts, such as options or futures that have not been settled for an asset. It is the number of options or futures contracts that are held by traders and investors in active positions. ...
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 ...