What is Option Chain?
An option chain is a table of all the call (CE) and put (PE) options available for one underlying, such as NIFTY or a stock, and one expiry, arranged by strike price. For each strike it shows the option's last traded price (LTP), open interest (OI), change in OI, volume and implied volatility (IV).
On this page
How is an option chain laid out?
Strike prices run down the middle. Calls sit on the left, puts on the right, and each side has the same columns so you can compare a strike's call and put at a glance. The row where the spot price falls splits the table: calls below the spot are in the money (ITM) and calls above it are out of the money (OTM). For puts it is the other way round.
On NSE's own page the columns are, from the edge inwards: OI, change in OI, volume, IV, LTP, net change, bid and ask quantity and price. AOC shows fewer columns by default (IV with delta, OI change, OI, volume and LTP with change) and adds a percentage under each figure.
What do the columns in an option chain mean?
LTP is the price of the last trade in that option. OI is how many contracts are still open. Change in OI is how much OI was added or cut today. Volume is how many contracts traded today. IV is the volatility the option price implies. Bid and ask are the best prices buyers and sellers are quoting right now.
Each of these has its own page in this glossary. If you only learn two, learn OI and change in OI, because support and resistance come from them.
What is the NIFTY option chain?
The NIFTY option chain is the option chain of the NIFTY 50 index on NSE. It is the most traded option chain in India, with strikes every 50 points and weekly as well as monthly expiries. BANKNIFTY, FINNIFTY and MIDCPNIFTY have monthly expiries, and SENSEX options on BSE have weekly ones.
Where can I see the option chain?
On the NSE website under derivatives, in every broker app (in Zerodha Kite, open the market watch, tap the instrument and choose Option chain), and in analysis tools such as AOC. The data is the same exchange data everywhere. What changes is how much of the reading the tool does for you.
The AOC public pages, for example /optionchain/nifty, show a free summary delayed by 15 minutes: spot, PCR, max pain and the strikes with the highest call and put OI. The full live chain needs AOC Pro.
What do traders look for first?
The strike with the highest call OI above the market (likely resistance), the strike with the highest put OI below it (likely support), where today's OI change is concentrated, and the overall put-call ratio. The guide on how to analyse an option chain walks through this with numbers.
