Nifty Bank Index
Education

How To Read Option Chain

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Option Chain

An option chain shows Call (buy if bullish) and Put (buy if bearish) options for indices like NIFTY 50.

Key Things to Focus On

1. Strike Price (Center)

Price levels of the market
Find ATM (At-The-Money) = closest to current price

2. Open Interest (OI)

High Call OI → Resistance
High Put OI → Support

3. Change in OI

OI increasing = new positions forming
OI decreasing = positions closing

4. LTP (Last Price)

Current option premium

5. Volume

Higher volume = more reliable data

Disclaimer

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