How to read an option chain
The option chain is the one screen every options trader checks. Here is what each column means, and how traders use it to spot support, resistance and where the market is positioned - with a sample chain you can explore.
- What every column of the option chain means
- How to find the ATM strike, in-the-money options and the OI walls
- How traders read support, resistance, PCR and max pain from it
The layout: calls, strikes, puts
Calls are on the left, puts on the right, and strike prices run down the middle. Each row is one strike; the same strike has a call and a put. Try the buttons:
Press a button and find it on the table.
| CALLS | PUTS | |||||||
|---|---|---|---|---|---|---|---|---|
| OI | Chg OI | IV | LTP | Strike | LTP | IV | Chg OI | OI |
| 18 | -2 | 13.9 | 352 | 22,200 | 28 | 15.2 | +9 | 71 |
| 24 | -3 | 13.6 | 268 | 22,300 | 41 | 14.8 | +14 | 88 |
| 39 | +4 | 13.2 | 192 | 22,400 | 62 | 14.3 | +21 | 104 |
| 66 | +12 | 12.9 | 128 | 22,500 | 96 | 13.8 | +18 | 97 |
| 92 | +21 | 12.7 | 78 | 22,600 | 146 | 13.5 | +3 | 52 |
| 118 | +26 | 12.6 | 43 | 22,700 | 210 | 13.4 | -4 | 33 |
| 84 | +9 | 12.8 | 21 | 22,800 | 287 | 13.6 | -6 | 21 |
Illustrative numbers, NIFTY at 22,520. OI in lakh shares.
What each column means
| Column | What it tells you |
|---|---|
| Strike | The price at which the option can be exercised. |
| LTP | Last traded price - the option’s premium per unit. Multiply by the lot size for one lot. |
| OI (open interest) | How many contracts are open at that strike - where positions are held (OI explained). |
| Change in OI | OI added (+) or removed (−) today - where traders are acting now. |
| IV (implied volatility) | The volatility priced into the option; higher IV means a costlier option. |
| Volume | Contracts traded today - how active the strike is. |
How to read the option chain in 5 steps
- Find the at-the-money strikeThe strike nearest the current price. Options around it are the most liquid and react most to small moves.
- Find the OI wallsThe strike with the highest call OI above the price is the main resistance; the highest put OI below it is the main support. The market often stays between them until expiry.
- Check the change in OIFresh call writing above the price (call OI rising) strengthens resistance; fresh put writing below strengthens support. OI falling at a wall means it is weakening.
- Read PCR and max painPut-call ratio = total put OI ÷ total call OI; about 0.7 to 1.3 is the usual NIFTY range. Max pain is the strike where option buyers lose the most at expiry.
- Compare IV across strikesIV tells you whether options are cheap or expensive. Check it against India VIX before buying or selling.
Now try it on live data: the NIFTY option chain, Bank Nifty option chain or any F&O stock. In the app you also get Greeks for every strike.
Common mistakes when reading the option chain
- Treating OI walls as guarantees. Support and resistance from OI shift every day and break on news.
- Mixing expiries. Read one expiry at a time - weekly and monthly chains can disagree.
- Ignoring liquidity. Far strikes with little volume have wide bid-ask spreads.
- Reading call OI as bullish. Most option OI is written; heavy call OI is a ceiling, not a bullish bet.
Frequently asked questions
What is an option chain?
An option chain is a table of every option contract for one underlying and expiry: calls on the left, puts on the right and strike prices down the middle, with each contract’s price (LTP), open interest, change in OI, volume and implied volatility.
How do you find support and resistance from the option chain?
Look for the strikes with the highest open interest. Heavy put OI below the current price is read as support (put writers expect the price to stay above it); heavy call OI above the price is read as resistance.
What does change in OI mean in the option chain?
Change in OI is how much open interest was added (positive) or removed (negative) at that strike today. It shows where traders are building or closing positions right now.
What is IV in the option chain?
Implied volatility is the volatility priced into that option. Higher IV means the option is more expensive relative to the expected move; compare it across strikes and with India VIX.
Which expiry should I look at?
Most activity is in the nearest expiry; NIFTY has weekly and monthly expiries. Use the expiry calendar to see every date.
Where can I see a live option chain?
On Quantsapp’s NIFTY option chain page - live prices, OI and IV for every strike, free, with Greeks for every strike in the app.
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For education only; not investment advice. Derivatives trading carries substantial risk. Disclaimer