We get it, the options chain NSE table is a labyrinth of data in a language difficult to understand. But only until now. Here 's where we decode the chart and understand valuable information about security today, along with predictions of the future.
Not all public stocks have options, but, for those that do, information is presented in real-time and in order. Options have a language of its own and when you first begin to trade options, the information may seem overwhelming. But learning how to read the options chain NSE table helps a huge measure in making money at the options market.
Before we start learning this extremely vital language, let 's jump back a little and see if we 're thorough with the basics.
What is Options Chain?
Options chain is a way to quote options prices in a list with all the options for a given security. This comprehensive listing has all the put and call option strike prices along with their premiums for a given maturity period. Online brokers and stock trading platforms display option quotes in the form of options chain.
Where to find information on options chain?
It 's highly likely that your favourite financial websites that provide stock prices will have real-time options listing. You can look up options chain NSE on the search engine and go ballistic!
Why is it important?
Calls and Puts are the two sections of options chain nse. Using the Call option, you can buy 100 shares of a stock at a lump sum price for a certain period of time. The Put option gives you leeway to sell 100 shares at a certain price, for a definite period of time. This is however, not mandatory.
There is a variety of stocks listed on the options chain nse chart. These have different designated dates of expiry. Options that have less than 30 days to expire start losing value quickly, as there is less time to execute them. So make your Put and Call decisions wisely to make money out of it.
Reading the options chain nse chartKnowing how to read options chains is an integral skill to master before jumping in with both feet. It can help you make better investing decisions and win more often.
The information is presented in tabular form. Let 's break down sections to understand it completely.
The chart has two sections - The left half shows details of Call options and the right half lists details of Put options. And the central piece has a list of strike prices for options contract in ascending order.
Expiry Date: This is the option contract 's expiry date. The expiry dates of various contracts being traded in the market, at present, are listed here.
Open Interest: This section lists the number of open positions for a particular strike price.
Last Traded Price (LTP): Not all options trade every day. So the price at which it was traded last, is listed here.
Net Change: The difference between the closing price of a security on the day's trading and the previous day's closing price. It can be positive or negative.
Volume: The total number of contracts traded on the present day.
Bid Quantity: Total Bid Quantity (TBQ) is the current no of buy order quantity in the system. Simply put, it 's demand.Bid Price: It 's the price a buyer is willing to pay for an options contract.
Offer Price: It is the offering price at which the options contract are made available for purchase.
Offer Quantity: Total Offer Quantity (TOQ) is the current no of sell order quantity in the system. Simply put, it 's Supply.
Scan through the coloured cells for strikes that are In The Money. The cells with white background are for Out of the Money strikes.