Guide

How to read an option chain

Strikes, calls vs puts, open interest, IV — and how to actually use them.

The option chain is a single screen that lists every call (CE) and put (PE) contract for an underlying, strike by strike, with live prices and positioning. Read it well and you can see where traders expect support, resistance, and the likely expiry pin.

The layout

Calls sit on the left, puts on the right, and strike prices run down the middle. Rows near the current spot are at-the-money (ATM); strikes above are OTM calls / ITM puts and vice-versa.

ColumnWhat it tells you
LTPLast traded premium of that contract
OIOpen interest — number of live contracts; where positions are built
Chng in OIFresh additions/exits today — the direction of new money
IVImplied volatility — the market's expected swing; higher = pricier options
VolumeContracts traded today — liquidity of that strike

Reading support & resistance

The strike with the highest put OI often acts as support (put writers defend it); the strike with the highest call OI often acts as resistance. The band between them is the market's expected range into expiry.

Max pain is the strike where the most option buyers lose — price often gravitates there near expiry as writers protect their positions.

A quick checklist

House of Trading renders the live chain with OI shifts, PCR and max-pain marked, so you can read positioning at a glance — then build and check a strategy before you act.

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