Option Chain is a list that provides information on the available option contracts for an underlying asset. These contracts give you the right to buy or sell a particular option at a specific preset price before the option’s expiration date.
The contracts in the Option chain are sold at a particular premium and the value of this contract is derived from the value of the stock, its implied volatility and the expiration date.
Option chain consists of two sections, Calls and Puts. A Call option gives the investor/trader the right to buy a certain asset at a fixed price, while a Put option gives the investor/trader the right to sell a certain asset at a fixed price. Other components in a Option Chain chart include the Strike Price, Bid and Ask Price and Open Interest.
