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How to read an options chain, column by column

An options chain looks like a spreadsheet that exploded. It's really one simple layout repeated. Here's how to read it, one column at a time.

Beginner guide · 9-minute read · Updated 2026-10-21

What a chain is

An Options chain is the full menu of options for one stock or fund. It lists every strike price, for one expiry date at a time, with the prices people are bidding and asking.

Every broker draws it a little differently. The columns below are the ones you'll find almost everywhere. Look for a "columns" or "settings" button to turn extra ones on. If calls and puts are new, start with options trading basics.

Step 1: pick the expiry

Most chains start with a row of dates, or a dropdown. Each date is one expiry. Choose one, and the chain below shows only options that end on that day.

Some chains show the number of days left next to each date. That number matters. A 7-day option and a 45-day option behave very differently. See theta decay explained.

Step 2: find the layout

The most common layout looks like this:

• Strikes run down the middle, low at the top, high at the bottom.
• Calls are on the left. Puts are on the right.
• Some apps show calls and puts on separate tabs instead. Same idea.

Many chains shade the in-the-money options a different color. For calls, that's strikes below the stock price. For puts, it's strikes above it. Often a line marks where the stock is trading right now.

Step 3: read the columns

Prices are per share. One standard US contract covers 100 shares. So an ask of $2.35 costs $235 per contract.

Step 4: one row, worked through

A made-up stock, XYZ, trades at $101.20. Here's the $100 call row, 30 days out (illustrative numbers):

Read it like a sentence:

1. It's in the money. The stock ($101.20) is above the $100 strike, by $1.20.
2. Buying costs about $340. That's the $3.40 ask × 100.
3. Of that, $1.20 is real value now. The other $2.20 is time value. See how options are priced.
4. The spread is $0.10. That's tight, about 3% of the price. Good sign.
5. Plenty of activity. 1,240 traded today, 8,615 still open.
6. It moves about $0.57 per $1 in the stock. That's delta. See options Greeks explained.
7. IV is 28%. The expected-move shortcut in implied volatility explained turns that into dollars.

Max loss and break-even from that row

If you bought that call at $3.40:

The spread: your hidden cost

The gap between bid and ask is a cost you pay just to get in and out.

On that quiet option, if you buy at $0.35 and sell right away at $0.20, you've lost over 40% with no move at all.

Volume vs open interest

These two get mixed up.

• Volume resets every day. It's today's activity.
• Open interest builds up over time. It's how many contracts are still out there, not yet closed or expired. It updates once a day, overnight.

High open interest with good volume usually means a busy, easy-to-trade strike. Low numbers in both often go with wide spreads. See Open interest for more.

Reading the IV column top to bottom

Look down the IV column for one expiry. It's rarely flat.

On many stock indexes, puts below the price show higher IV than calls above it. That shape is called the skew. It's the market paying more for crash protection. Our implied volatility guide explains why.

If one expiry has much higher IV than its neighbors, check the calendar. There's often an earnings report or event inside it. See IV crush explained.

Red flags to look for

• A spread wider than about 10% of the price. Costly to trade.
• Zero or tiny volume and open interest. You may struggle to get a fair fill.
• A "last" price far from the bid and ask. It's stale. Trust the bid and ask.
• One expiry with IV far above the rest. An event is probably priced in.
• A strike that looks "cheap." Cheap usually means unlikely to pay off.

Order tip: use limits, not market orders

Because spreads can be wide, many traders use a Limit order set between the bid and ask, rather than a Market order. A market order on a quiet option can fill at a poor price.

Try it today (no money needed)

1. Open the chain for a large stock you know. Choose an expiry about 30 days out.
2. Find the strike nearest the stock price. Read its call row like the 7-step sentence above.
3. Work out the cost per contract, the spread as a percent, and the break-even.
4. Now find a call far out of the money. Do the same. Compare the spreads.
5. Write down which one would be easier to get out of, and why.

Questions