Options Chain
An options chain is the table of every listed call and put for an underlying asset, grouped by expiry date and strike price. Each row shows prices such as bid, ask and last, plus volume, open interest and often implied volatility and the Greeks.
The first time you open an options chain it can look like a wall of numbers. But it follows a simple layout: calls on one side, puts on the other, strike prices down the middle, one tab for each expiry. Once you know what each column means, the chain tells you how much options cost, how actively they trade and what the market expects. This entry explains how to read one.
- Category
- Derivatives
- Reading time
- 4 min
- Also called
- Option chain, Options matrix, Option quotes table
- Updated
Options chains in plain words
Each option in the chain is identified by its underlying, expiry date, strike price and type — for example an "ABC December 70 Call".1
The price of each option, the premium, depends on the stock price relative to the strike, the time to expiry and the stock's volatility.1
Every line is a contract giving the buyer a right, and the seller an obligation, to buy or sell the underlying at that strike.2
How to read an options chain, step by step
Choose the expiry
Each date has its own chain. See Expiration Date.
Find the strikes
Listed down the middle. See Strike Price.
Calls on one side, puts on the other
Usually calls left, puts right.
Read bid and ask
What you can sell at and buy at. See Bid-Ask Spread.
Check volume and open interest
How active and liquid each contract is. See Open Interest.
Look at implied volatility and Greeks
Expected movement and sensitivity. See Implied Volatility.
Worked examples
Example 1 — Reading a quote
$20 spreadA row shows the $70 call: bid $2.40, ask $2.60.
| Buy at ask | $2.60 × 100 = $260 |
| Sell at bid | $2.40 × 100 = $240 |
| Spread cost | $20 per contract |
A buyer pays the ask and a seller receives the bid, so the gap is an immediate trading cost. See Bid-Ask Spread.
Example 2 — In or out of the money
Strike vs priceStock at $72. Chain shows the $70 call and the $75 call.
| $70 call | $2 in the money |
| $75 call | $3 out of the money |
The stock price relative to the strike is one of the main drivers of an option's premium.1
Example 3 — Time makes a difference
Time costs moneyThe $75 call costs $0.80 for the expiry in 2 weeks and $3.10 for the expiry in 6 months.
| 2-week call | $80 per contract |
| 6-month call | $310 per contract |
| Extra for time | $230 |
Premium depends partly on how long remains until expiry, so later dates cost more.1
Key columns in an options chain
| Aspect | Meaning | Why it matters |
|---|---|---|
| Bid / Ask | Best prices to sell / buy | Trading cost |
| Volume | Contracts traded today | Current activity |
| Open interest | Contracts still open | Liquidity |
| Implied volatility | Expected movement | Option pricing |
How traders use the options chain
Choosing contracts
Comparing strikes and expiries before a trade.
Checking liquidity
Tight spreads and high open interest. See Liquidity.
Reading sentiment
Call and put activity. See Put-Call Ratio.
Building spreads
Picking legs for multi-option strategies. See Vertical Spread.
Advantages and disadvantages
Advantages
- Shows every available contract in one place.
- Reveals cost, liquidity and expectations.
- Essential for planning any options trade.
Disadvantages
- Overwhelming at first.
- Quotes can be stale in illiquid contracts.
- Layouts differ between brokers.
Going deeper
Read as far as you need. Each level builds on the one before it.
Expiry dates
Beginner
Standard monthly options have historically expired around the third Friday of the month, but weekly and quarterly expiries also exist.1
Volume vs open interest
Intermediate
Volume counts today's trades; open interest counts contracts still open. Rising open interest means new positions are being opened. See Open Interest.
The volatility smile
Advanced
Implied volatility often differs across strikes, forming a smile or skew that shows where traders are paying up for protection. See Implied Volatility.
Common mistakes
Trading illiquid strikes
Wide spreads eat profits.
Reading the last price
It may be hours old; use bid and ask.
Wrong expiry tab
Double-check the date before ordering.
Forgetting the multiplier
Quotes are per share; a contract is usually 100 shares.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- An options chain lists every call and put for an asset.
- It is organised by expiry and strike.
- Bid and ask show the real trading prices.
- Volume and open interest show liquidity.
- Premiums depend on price, time and volatility.
Frequently asked questions
Why are calls on the left and puts on the right?
What does the shading on a chain mean?
Is the last price what I will pay?
Further learning
- Options
What each row represents.
- Open Interest
Reading liquidity.
- Implied Volatility
The market's expected move.
- Option Greeks
Sensitivity columns explained.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- Investor.gov (SEC). An Introduction to Options – Investor Bulletin (opens in a new tab) Checked .
- FINRA. Options (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.