What Is An Option Chain & Why Is It Important?2 min readReading Time: 2 minutes
So, we recently launched the Option Chain feature in our F&O Dashboard. Check it out here – Paytm Money F&O Dashboard
But, let’s now answer what exactly is an Option Chain and how important is it to traders.
What is an Option Chain?
A listing which shows all available option contracts for a given security with their specific features is known as an option chain. The list shows all available calls and puts with their expiration, strike prices, volume, Open Interest, Greeks and pricing information for a given security within a given maturity period.
Nifty 50, Nifty Bank and Nifty Financial Services are the highest traded derivative instruments across all derivative contracts in NSE. For any derivative trader these 3 are the very important indices to track. As we all know, index options account for most of the traded volume in derivates. Thus, Option Chain is a trader’s favorite tool to analyse the market and trade faster.
Why Is An Option Chain Important For A Trader?
1. Easier access to Option Contracts: Accessing Index Option chain is super easy and super fast from PML app. Just click on the Market Indices widget for the option chain.
2. Trade Faster: Now you no need to add option contacts to Market watch compare which option to trade. As the option chain shows all the available option contracts with relevant information, you can easily choose the right option and trade faster.
3. Access to all the expiries: From the Option chain you can access all the strike prices, across all the expiries of a given underline.
4. Informed Decision: Our option chain is packed with lots of market intelligence like Option Greeks, Open interest etc. Now you can analyze the data and make the right decision before trading.
Where Are Option Chain On The Paytm Money App?
For the Index Option Chain, simply tap on either of the indices shown below!
The red and green bars in the screenshot below indicate the OI for a particular strike price of calls and puts. The longer the green/red bar, the higher the OI.
Wish to buy/sell or call/put option for any strike price? Simply click on the screen!
Option Chain of Nifty 50, Nifty Bank, and Nifty Financial Services can be accessed by clicking on Market Indices widgets of the relevant index in the F&O Dashboard.
Check out the detailed blog on F&O Dashboard’s 7 new features including Option Chain here
Source for Option Chain data on Paytm Money – Heckyl Technologies Private Limited
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