21st May 2022

Option Chain Analysis

Option Chain Analysis – Live Nifty Option Chain and other stocks options chain

An option chain analysis consists of all the call and put option data, of an underlying security, for a specific expiration period. Listing includes information about option premium, open interest, volume ,option price etc for different strike prices.

Option Chain Analysis - intradayscreener.com

NSE Option chain Analysis can be used to find out the actual trend of the market. Usually institutions and big funds sell options. So by finding out which strike has more open interest, we can actually understand the support and resistance levels of a security (Be it Stocks or Indexes) for that expiry.

Features Available in Options Chain Analysis And Interpretation

For Option trading, you need to track the stocks expiry wise Options Chain data. You can select the particular contract name in the contact section. You can select the corresponding expiry date to analyse the stock for that particular expiry. The Options chain data and interpretation contains the Total Open Interest data and Today OI change. The red bar indicates Call OI and the Green bar indicates Put OI.Stocks have only monthly expiry but indexes have weekly expiry too.

Consider the open interest table for nifty50 of (25/11/2021) expiry.On the right side chart  you can see total open interest change on that particular day and on the left side chart you can see total open interest of that particular expiry. As you can see on the left side table 17000PE strike price has highest open interest which denotes that more no of traders has shorted 17000PE option so it act as a strong support level for the market.similarly 18000CE has highest open interest which will act as a strong resistance level.So we can expect market to be expired in between that range.If market breaking these levels means highest loss for big institutions so they don’t let it  happen. 

You can also check the option chain data in Tabular form, by clicking on the “Click to view in table” by clicking click to view in table.Option chain analysis is very simple on intradayscreener.com

Options Chain Data And Interpretation – Column reference:

Lets understand how to do option chain analysis using options data on Intradayscreener.com . The chart in the data is divided into call and put options. We have call option data on the left side and put option data on the right side. And in the center of the chart we have various strike prices.

Option Chain data in table - intradayscreener option chain analysis

We also see part of the data on  both sides which are highlighted in light brown and the rest in white colour. strike prices in light brown indicate ITM (in the money) and strike prices in white colour indicate out of the money.

option chain data

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Here you can get to know about all the columns present in the option chain feature(stocks, nifty, banknifty option chain)

  • Trend: In the trend column, you can check the trend of a particular contract like Short covering, Long Buildup, Short buildup and long unwinding
  • OI: The OI column will show you the data of Open Interest of a particular Contract.
  • OI change: The OI Change column will show you the data of the OI change from yesterday’s close to today’s close.
  • Volume: The Volume column will show you the data with how much volume the particular contract has been traded. 
  • IV: The IV column will show you the data on the implied volatility of a particular contract. 
  • Net change: It is the net change in the LTP(last traded price).The positive change means rise in price and the negative change means decrease in price.
  • LTP: Last Traded Price (LTP) stands for the price of a stock on which the last transaction or trade occurred. 
  • Strike: In the Strike, you can check the strike price of a particular stock. You can easily sort the Strike data from highest to lowest and lowest to highest by clicking on Strike.

OPTION GREEKS:If you want to know how option prices react  to a given change in some of the variable inputs, you may turn into Greeks option.

On the left side top of the option table you can view the Greek option, by clicking that you will see the Greeks table. The most commonly used Greeks are delta, gamma, theta, vega, Rho.

Here you can get to know all the features available in option greeks table

option greeks table - option chain analysis Intradayscreener

DELTA: It is the change in the price of an option resulting from a change in underlying asset. It ranges from 0 to 1.At the money have a delta close to 0.5

GAMMA: Delta is not constant, it changes as the price of underlying moves. Gamma measures change in the delta of an option in response to change in the price of an underlying asset.

THETA: Theta represents the time decay of an option contract and specifies the time value or extrinsic value. The call put option loses its value every day as it approaches expiry.

VEGA: Rate of change in the price of an option due to the change in the implied volatility. The higher the volatility higher probability of large price moments.

RHO: Rho measures change in the price of an option relative to change in interest price.

How to use Options chain data and Interpretations

By using the Options chain data and Interpretations feature you can now easily interpret the option chain bank nifty data in the current expiry at the live market. You can easily track the movement of options using the options chain. You can select the contract in the contact section and the corresponding expiry date to see the stock of that particular expiry.