Option Chain
A table listing all available strikes for an underlying and expiry, with prices, volumes and open interest for calls and puts.
How it is identified
Test: the display lists every listed strike for one expiry, with call data on one side and put data on the other
Unit
qualitative
In depth
The option chain is the primary working screen for anyone trading options, showing at a glance where liquidity sits, how premiums vary across strikes, and how implied volatility differs between them. Its most useful column is often the bid-ask spread, because far strikes can be quoted so wide that the theoretical value is unobtainable in practice. Large open interest at particular strikes is widely interpreted as support or resistance, an interpretation with no established mechanism behind it that this dictionary does not endorse. The chain is data, and reading positioning into it requires assumptions the data does not supply.
Worked example
A chain shows the 24,000 call at a bid of 296 and an ask of 304, a 2.7% spread, while the 25,000 call is quoted 8 bid and 14 ask — a 55% spread that makes the quoted mid-price largely theoretical.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Option Chain” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.