Here comes the 3rd and final part of the long weekend 'Beginners' Pathway" series.

In this we'll see Open Interest basics and Option Chain Analysis.

There are two types of Options, Call Option & Put Option.
This graphics show when to buy and when to sell options.
The first thing that we need to know is the moneyness i.e. whether an Option is At the money (ATM), In the money (ITM) or Out of the Money (OTM).

The strike closest to the market price is At The Money.

I have tried to explain OTM & ITM in a very simplistic & easy manner.
Option chain of Nifty can be seen here

https://t.co/TgHdov6Kox
Lets see each item one by one
OI (Open Interest) – is the number of open contracts relating to that strike. One buy & sell transaction constitutes one unit of OI.

CHNG IN OI – is the change in OI as compared to last day

VOLUME – is the total number of contracts that are traded for a specific strike.
IV means Implied Volatility, High IV means market is expecting more fluctuations in future.

LTP means the Last Traded Price or Premium of an option.

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