Options glossary
Plain-English answers to option chain questions for Indian traders: what AOC is, LTP, open interest, OI change, PCR, max pain, IV, Greeks, time value, support and resistance and backtesting.
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Historical Option Chain Data
Historical option chain data is the record of every strike's price, open interest, OI change and volume for past sessions.
How to Analyse an Option Chain
To analyse an option chain, find the call strike with the highest open interest above the spot price (resistance) and the put strike with the highest open interest below it (support), then check today's OI change to see whether writers are adding to those levels or moving them.
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Market Mood Index (MMI)
The Market Mood Index (MMI) is a fear and greed gauge for the Indian stock market on a scale of 0 to 100: readings below 30 mean extreme fear, 30 to 50 fear, 50 to 70 greed and 70 and above extreme greed.
Max Pain
Max pain is the strike price at which the total value of all open call and put options would be lowest at expiry, which is the price where option buyers as a group would lose the most.
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OI Buildup
OI buildup is the reading of price change together with open interest change to tell what traders are doing: price up with OI up is long buildup, price down with OI up is short buildup, price up with OI down is short covering, and price down with OI down is long unwinding.
Open Interest (OI)
Open interest (OI) is the total number of derivative contracts, such as options or futures, that are open at a point in time and have not yet been squared off, exercised or expired.
Option Calculator
An option calculator is a tool that estimates the fair price of an option and its Greeks from the spot price, strike, days to expiry, implied volatility and interest rate, usually with the Black-Scholes model.
Option Chain
An option chain is a table of all the call (CE) and put (PE) options available for one underlying, such as NIFTY or a stock, and one expiry, arranged by strike price.
Option Chain Backtest
An option chain backtest replays the option chain of a past trading session so you can see open interest, OI change, PCR and support and resistance as they stood at each minute, and check how a setup would have played out before using it with real money.
Option Chain Data in Excel
To get option chain data into Excel you can download the CSV from the NSE option chain page, which gives a one-time snapshot, or pull live quotes through your broker's API into a sheet that refreshes.
Option Chain Kaise Dekhe (Hindi)
Option chain ek table hai jisme kisi index ya stock ke saare call (CE) aur put (PE) options strike price ke hisaab se dikhte hain, har strike ka LTP, open interest (OI), OI change aur volume ke saath.
Option Chain Stock Screeners
Option chain stock screeners scan every F&O stock's option chain for open interest patterns, so you get a short list of stocks with strong support and resistance or fresh positioning instead of reading around 200 chains by hand.
Option Greeks
Option Greeks are measures of how an option's price changes when one input changes: delta for the underlying price, gamma for the change in delta, theta for the passage of time and vega for implied volatility.
Option Premium
An option premium is the price of an option contract, and it equals intrinsic value plus time value.
