• Helps in Decision making - Option Chain Analysis can be used to find out the actual trend of the particular stock or index. Usually institutions and big funds sell options. By finding out which strike has more open interest, we can actually understand the support and resistance levels of a security (be it stocks or indices) for that expiry. The Put strike with highest Open Interest is considered as Strong Support and the Call strike with highest open interest is considered as Strong Resistance.
• Ease of Trading – Option chain helps the trader to see all the strike price of a particular symbol in one single screen. The trader can also select different expiry from that window and also it enables the user to pick the trade directly from that screen and execute it.

 

Option Chain Analysis: Your Key to the World of Options Trading