option chain in trading

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An option chain lists all option contracts, including put and call option for given security. However, several traders focus on net change,' 'bid,' 'last price,' and 'ask,' columns to assess current market conditions. Option chain is also called the option matrix.

It proves useful for assessing the depth and liquidity of specific strikes. It aids traders to find option premium against its corresponding maturity date and strike price. Option chain serves as a warning against breakouts or sharp moves in the index.