Options Chain is a comprehensive listing of all available option contracts for a particular underlying asset, such as a stock, index, or commodity. It displays crucial information like strike prices, expiry dates, premiums, open interest, and volume for both call and put options. Traders and investors use the options chain to analyze market sentiment, assess potential strategies, and make informed trading decisions.

At the top of an options chain table, youíll find the underlying assetís price, expiration date, and contract type. The table is typically divided into two sections ó call options on the left and put options on the right. Each row represents a specific strike price, showing the bid, ask, last traded price (LTP), change, volume, and open interest (OI). A rise in OI along with price changes helps identify whether a trend is strengthening or reversing, giving insights into market participantsí expectations.

For example, if call option OI increases along with premium, it signals a bullish sentiment, whereas rising put OI and premium suggest a bearish outlook. Traders often analyze the Put-Call Ratio (PCR) to measure the overall mood of the marketóvalues above 1 indicate more puts (bearishness), while below 1 reflects bullish activity.

The options chain is not just for traders; even long-term investors can use it to plan hedging strategies or generate income through covered calls. However, itís important to understand that options carry risks and require careful analysis of volatility, time decay, and liquidity before entering any trade. By mastering how to interpret the options chain, market participants can enhance their decision-making and manage risk effectively within regulatory guidelines set by SEBI.