You can get NSE options chain for all the derivative contracts on the exchange. You won’t ever have to visit third party websites to derive the information. This is one of the many advanced features available on Fyers One that makes it the best trading platform in India.
What is NSE Options Chain – Any options chain is a simple representation of all the call options and put option strike prices listed with their premiums. It helps to understand all the prices of options along with other details like bid / ask prices, percentage change, OI etc. in the same window.
On our trading platform, you get real-time quotes and data which you will find very useful to figure out which derivative contracts have the highest open interest and which ones are moving the most among all the NSE stocks.
Learn how to use Options Chain:
To access the tool, click on “FnO Analysis” from the main menu and select “Option Chain with tools”.
Structure of an options chain: As you can see above, the strike prices are listed in the centre (blue column) in an ascending order. On the right-hand side you have the put option prices of all the corresponding strike prices. Likewise, on the left side is dedicated to call option prices of the corresponding strike prices listed in the middle. On the bottom right-hand side of the tool is the symbol search where you can select any F&O scrip and click on “OK”. You can also add the stock to your watchlist. As you toggle different strike prices, the bottom black display shows you the put call ratio of the options in the corresponding strike prices. In addition, our trading platform gives the functionality to limit your watchlist of strike prices to 20, 30, 40 or all strike prices in the underlying stock. You can choose to get limited strikes or expand the list to all strikes based on your preferences.
Variance: Using this tool, you can see the variance between the Last Traded Price (LTP) of the option and its theoretical value. You need to click on the “Variance” button on top right hand side of the options chain to access it. As you can see in the image above, it shows you the potential of a stock’s future movement. For those who like to base your decision on math, this tool will help you save your time. You can also change the annual volatility manually to simulate different results. The tool updates every 15 seconds as we have mentioned in the tool itself.
Analysing Open Interest: Opening interest is the total number of contracts which are outstanding in the markets. In other words, it means the number of derivative positions still existing in the markets and which have not yet been closed out before expiry. Open interest has nothing to do with the volume in the underlying stock. It is independent and can increase to any volume if there are people willing to initiate new positions. So if there is a new buyer and seller who enter into a contract, the open interest goes up by 1 and vice versa. In other words, if both the buyer and seller close out the position before expiry then the open interest of that contract reduces by 1.
Some basic interpretations: There are a few standard ways of reading the open interest in combination with the underlying equity price and volumes. Take note of these as it will help you develop your own techniques. As a trader, it is an important skill set if you want to understand the demand supply and speculative money flows in the stock markets. Here are some basics:
The bottom line: Open interest shows you the demand supply of the speculative money flows in the futures and options segment of the stock market. As a trader, these short-term fluctuations can be taken advantage of. Upon keen observation, over time you can get a sense of the price at which the contract is going to expire. I suggest you add it to your arsenal of trading skills. For that, you’ll have to use the NSE options chain more often before entering trades.
If you need any clarifications, let me know in the comments section below.
Tejas is the Co-Founder & CEO @ www.fyers.in, the youngest team to get NSE’s broker license. FYERS was started as a mission to enhance the terrain for traders and investors in India. He previously worked at Zerodha, Futures First & has been a professional trader for several years.