How to read the Nifty option chain: a simple guide
By CA Vaibhav Sandipan Mote, SEBI Registered Research Analyst (INH000019895). Updated 12 November 2026.
Short answer: The option chain is a table of all option contracts for one index or stock and one expiry date. Strike prices run down the middle, call option data sits on the left and put option data on the right. The main columns are open interest (OI), change in OI, volume, implied volatility (IV) and last traded price (LTP). It shows where contracts are open. It does not tell you what will happen next.
The layout
- Middle column: strike prices, for example 25,000, 25,050, 25,100.
- Left side: call options (CE) for each strike.
- Right side: put options (PE) for each strike.
- Top of the page: the expiry date you have selected and the current index value.
What each column means
- OI (open interest): the number of contracts still open at that strike.
- Change in OI: how much the open interest has gone up or down today.
- Volume: the number of contracts traded today.
- IV (implied volatility): how much movement the option price is building in. Higher IV means costlier options.
- LTP (last traded price): the latest premium at which the option traded.
- Bid and ask: the best prices at which buyers and sellers are waiting.
ITM, ATM and OTM
- ATM (at the money): the strike closest to the current index value.
- ITM (in the money): a call with a strike below the index value, or a put with a strike above it.
- OTM (out of the money): a call with a strike above the index value, or a put with a strike below it.
On the NSE option chain, in-the-money strikes are shown with a shaded background.
How traders commonly use it
- The strike with the highest call OI is often watched as a level where the index may face resistance.
- The strike with the highest put OI is often watched as a level where the index may find support.
- A large change in OI at a strike shows where fresh positions are being built or closed today.
These are common readings, not rules. They fail often, especially on event days and near expiry.
Limits of the option chain
- OI does not show whether the big positions are held by buyers or by sellers with a view.
- Levels shift during the day as positions are added and closed.
- High OI at a strike does not stop the index from crossing it.
- Options can lose their full premium. SEBI studies show that most individual traders in equity derivatives make losses.
Common questions
What is OI in the option chain?
OI means open interest. It is the number of option contracts at a strike that are still open and not yet closed or expired.
Where can I see the Nifty option chain?
The NSE website publishes the option chain for Nifty, Bank Nifty and other contracts free of cost, for every available expiry.
Important: This article is for education only. It is not investment advice and not a recommendation to buy or sell any security. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, enlistment with a SEBI recognised supervisory body and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.