Beginner Guide to Read Option Chain Chart

Read Option Chain Chart

Options are derivatives instruments that are effective for earning money, hedging risk, and more. However, for this, you need to develop skills to read and interpret an option chain chart. The blog will provide the fundamental information you need to confidently navigate the option chain chart, regardless of your experience with options trading.

What is an Options Chain?

An options chain is typically a table or list containing all the possible options contracts for a specific underlying asset. It is a tool traders use to compare and evaluate various options contracts to make well-informed trading choices.

Several columns in the options chain usually provide details about every option contract. These columns could include the striking price, expiry date, type of call or put option, bid, ask, and current price of the underlying asset.

Understanding Options Chain Chart

Here are the particulars of the options chain chart. You can learn more about it by taking an option trading full course in Hindi or English from

1. Call Option

A contract that gives the purchaser the right, but not the obligation, to purchase the underlying asset at a specific strike price and before a predetermined expiry date.

2. Put Option

A contract granting the buyer the right, but not the obligation, to sell the underlying asset before a deadline (expiration date) at a defined price (strike price).

3. Strike Price

The strike price is the predetermined amount an option contract allows you to purchase or sell the underlying asset, such as a stock. For a call option, it is the price at which you may purchase. For a put option, this is the price you may sell.

4. Expiration Date

The date at which an option contract expires and becomes invalid if not exercised or exchanged.

5. Volume

In options, volume is the quantity of contracts exchanged in a day, which shows the trading activity and liquidity of a particular option. It is determined daily and denotes the aggregate number of contracts that were purchased and sold on that specific day.

6. Bid and Ask Prices

A bid is the maximum price a buyer is prepared to pay for an option; an ask is the lowest amount a seller is ready to accept. The gap between these prices, or bid-ask spread, determines how much it costs to enter and exit option positions.

7. Open Interest

Open interest is the total number of outstanding contracts for a particular option, demonstrating the market’s overall commitment to that option. It shows how many contracts are currently active in the market—that is, have not expired, been exercised, or closed out.

8. Implied Volatility

One crucial concept in options trading that represents the market’s anticipated volatility of the underlying asset is implied volatility. Being directly related to the premium paid by buyers and received by sellers, it is essential to determine the price of an option contract.


Option trading requires interpreting an options chain chart. Novice traders should learn it before diving into the derivatives market. 

If you are looking to iron out your skills in the market, opt for share market online courses in Hindi or English on