Option Chain Analysis

Option chain analysis is the process of evaluating the information provided in the option chain to identify potential trading opportunities. Traders use option chain analysis to evaluate the market's expectations of an asset's future price movements and make informed decisions about their investments.

OI stands for Open Interest, which is the total number of outstanding option contracts that have not yet been settled. OI helps to gauge market trends and shows how many options contracts are still open. Higher open interest generally indicates higher liquidity and market activity for that contract.

Use Graphs and Charts: You can plot the option chain data on graphs and charts. It will help understand the trends associated with different components of the option chain. Technical and Fundamental Analysis: Investors must analyse technical factors (associated with price) to make informed decisions.