An options chain, also known as an option matrix, is a listing of all available options contracts for a given security. It shows all listed puts, calls, their expiration, strike prices, and volume and pricing information for a single underlying asset within a given maturity period.

How does option chain work?

An option chain has two sections: calls and puts. A call option gives the right to buy a stock while a put gives the right to sell a stock. ... An option's strike price is also listed, which is the stock price at which the investor buys the stock if the option is exercised.

How do you trade options chain?

This rule applies to calls and to puts. The option chain allows the trader to evaluate the liquidity and depth of each specific strike. The option chain does not only capture the executed price but also captures real time bid price, ask price, bid quantity and ask quantity.