Definition
Option Chain
An option chain is the full table of all available call and put strikes for a contract, with their prices and data.
The NSE option chain lists every strike for an underlying like Nifty or Reliance, showing the call data on the left, the strike in the middle, and put data on the right — including last price, bid/ask, open interest, change in OI, and implied volatility for each.
Traders read the chain to spot where open interest is piling up (potential support and resistance), to gauge the put-call ratio, and to find liquid strikes. The highest call OI often acts as a ceiling and the highest put OI as a floor, which is why the option chain is the first screen most F&O traders open each morning.
Related terms
- Open InterestOpen interest is the total number of outstanding futures or options contracts that have not yet been closed.
- MoneynessMoneyness describes where an option's strike sits relative to the current price — in, at, or out of the money.
- Max PainMax pain is the strike price at which the largest number of option buyers would lose money on expiry.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.