Options chain

An options chain is a table that lists every available call and put option for a stock or ETF, organized by expiration date and strike price. It is the standard view for finding, pricing and comparing contracts.

How it works

Most chains show one expiration at a time, with calls on the left, puts on the right, and strikes running down the middle. Typical columns for each contract:

In-the-money strikes are often shaded so the current stock price is easy to locate.

Why it matters for traders

The chain is where a lot of signal hides. Traders scan it to:

• Read the expected move from the at-the-money straddle before earnings or an FDA decision.
• Spot strikes where volume is far above open interest, a common definition of unusual activity.
• Compare implied volatility across expirations to see which dates carry event premium.
• Check bid-ask spreads before trading, since wide spreads in thin strikes are a real cost.

Example

Northwind Therapeutics (NWTX) trades at $24.60 with a PDUFA date in three weeks. On the chain for the first expiration after that date, the $25 row shows:

• Call: bid $2.80, ask $3.00, volume 4,100, open interest 1,250, IV 135%
• Put: bid $3.10, ask $3.30, volume 2,600, open interest 3,900, IV 138%

The straddle mid-price is about $2.90 + $3.20 = $6.10, so options are pricing a move of roughly 25% by that expiration. Call volume more than three times open interest suggests fresh call positioning.

FAQ

How do you read an options chain?

Pick an expiration, find the strike closest to the stock price, then read across: calls on one side, puts on the other, with bid, ask, volume, open interest and implied volatility for each.

Why do some strikes have no bid?

Far out-of-the-money or thinly traded contracts may have no buyers at any price, which means they are effectively worth zero to a seller at that moment.