An Option Chain (also referred to as an option matrix) is a comprehensive tabular listing of all active derivative contracts for a specific underlying asset, such as an equity index (Nifty 50, Bank Nifty) or individual stock.
Core Components of an Option Chain Table
When viewing an option chain on exchanges like the National Stock Exchange (NSE), the table is organized symmetrically around a central column of Strike Prices.
- Call Options (CE): Listed on the left side of the table.
- Strike Price: Placed in the center column.
- Put Options (PE): Listed on the right side of the table.
Key Metrics Included in Every Option Chain
1. Strike Price
The predetermined price at which the owner of an option contract can buy (for Call) or sell (for Put) the underlying asset upon exercise.
2. Expiry Date
The final date on which the option contract remains valid. Equity index options on the NSE feature weekly and monthly expiration cycles.
3. Latest Traded Price (LTP)
The most recent price at which an option contract premium was transacted in the market.
4. Open Interest (OI) & Change in OI
Open Interest measures the total number of active, unsettled contracts held by market participants. Change in OI reflects intraday contract creation or liquidation.
5. Implied Volatility (IV)
A percentage metric reflecting the market's expectation of future volatility embedded into option premiums according to pricing models.
6. Volume & Bid/Ask Spreads
Trading volume indicates total contracts traded during the session, while bid/ask quotes show current buyer and seller price limits.
Educational Summary: An option chain provides a complete snapshot of market liquidity, contract pricing, and open positions across all available strikes.
Next step in your learning: Explore our Interactive Option Chain Tool →