What is Option Chain Analysis?

Option chain analysis is the study of available call and put options across different strike prices and expiry dates. An option chain usually shows information, such as:

• Open interest
• Change in OI
• Trading volume
• Implied volatility
• Last traded price
• Bid and ask prices.

Traders use this information to study where “options activity” is concentrated and how positions are distributed across different strike prices. For example, 

• An option chain for Nifty may show the OI for both calls and puts at strikes such as 24,900, 25,000, and 25,100.

Note: Option chain data only describes market activity. It does not predict or guarantee where the underlying index or stock will move.

How to Read Option Chain NSE?

NSE provides an “option chain interface” for equity derivatives. The data is presented in table format. To read an NSE option chain, traders may start by identifying the:

• Underlying asset
• Expiry date, and
• Available strike prices

The option chain generally shows Call (CE) data on one side and Put (PE) data on the other, with the strike price in the middle. Some key columns include:

• Last traded price (LTP)
• Volume
• Open interest (OI)
• Change in OI, and
• Implied volatility (IV)

Traders can compare OI and changes in OI across different strike prices to see where option positions are concentrated. 

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