Option Chain Basics: OI, Change in OI, Volume, LTP and IV
An option chain groups call and put contracts by strike price and expiry. It is a compact way to compare activity across many contracts, but each column answers a different question. Reading the fields together is more useful than treating any one number as a directional signal.
Open interest and change in open interest
Open interest, or OI, is the number of outstanding option contracts that remain open. Change in OI shows how that open interest has changed over the selected period or session.
Rising or falling OI can describe participation, but it does not by itself tell you whether the underlying must rise or fall. Price behaviour, contract side, strike location and wider market context still matter.
Volume and LTP
Volume shows how many contracts traded during the session. LTP is the last traded price of the option contract. High volume can indicate active interest, while a thinly traded contract may have wider spreads and less reliable last-price information.
Always distinguish the option premium from the underlying price. They react to different inputs, including time remaining to expiry and implied volatility.
Implied volatility
Implied volatility, or IV, is a market-derived estimate embedded in option prices. Higher IV generally corresponds to more expensive option premiums when other factors are similar, while falling IV can reduce option value even if the underlying moves in the expected direction.
IV is not a direct forecast of direction. It is better understood as a measure of expected variability reflected in option pricing.
How to use an option chain responsibly
Compare nearby strikes, call and put activity, volume, OI changes and the relationship between spot or futures price and strike location. Use the chain as context rather than a certainty engine.
SS MarketVerse presents option-chain data and analytical context for study and research. Option metrics can change rapidly and do not guarantee a trade outcome.