What is an options chain?
In one line: An options chain is a table that lists all the call and put options for one stock or index, sorted by expiration date and strike price.
What it looks like
Pick a stock and an Expiration date. The chain shows calls on one side, puts on the other, and strike prices down the middle.
| Column | What it means |
|---|---|
| Bid | The highest price a buyer is offering now |
| Ask | The lowest price a seller will take now |
| Last | The price of the most recent trade |
| Volume | Contracts traded today |
| Open interest | Contracts still open |
| IV | Implied volatility: expected size of moves |
| Delta | How much the option moves per $1 in the stock |
A simple example
A stock trades at $100. On the chain you see the $105 call, expiring in 30 days:
Bid $1.80, Ask $2.00, Open interest 4,200, Delta 0.30.
Most US stock options cover 100 shares. So buying one at the ask costs $2.00 × 100 = $200. That $200 is the most a buyer of this call can lose.
The gap between bid and ask, $0.20, is the Spread. On one contract that's $20 you give up just by getting in and out.
Use the options profit calculator to see what this call is worth at different stock prices.
Why it matters
The chain shows how busy each option is and what it costs to trade. Strikes near the stock price usually have the most volume and the tightest spreads. Far-away strikes can be thin, with wide spreads.
Our options trading basics guide covers calls and puts from the start.
A common mistake
Trusting the "Last" price. The last trade may be hours old. What you'll actually pay is near the ask, and what you'll get selling is near the bid.
Use limit orders on options. A market order on a thin option can fill far from where you expected.
Questions
Why are some strikes highlighted on an options chain?
Many platforms shade options that are In the money, so you can tell them apart at a glance.
What does open interest tell you?
How many contracts are still open. Higher open interest usually means more traders and easier fills.
How many shares does one option contract control?
Usually 100 for US stock options. Some products differ, so check the contract details.
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