Option Chain

Filed Under » ,
Dictionary Says

Definition of 'Option Chain'

A form of quoting options prices through a list of all of the options for a given security. An option chain is simply a listing of all the put and call option strike prices along with their premiums for a given maturity period. The majority of online brokers and stock trading platforms display option quotes in the form of an option chain.
Investopedia Says

Investopedia explains 'Option Chain'

Option chains are probably the easiest form of presentation for most retail investors to understand when observing option quotes. Much like a matrix, traders can simply find an options premium by following the corresponding maturity dates and strike prices. Additionally, bid-ask quotes or simply mid quotes can be displayed within an option chain, depending on the presentation of the data.

Related Definitions

  • Call

    1. The period of time between the opening and closing of some future markets wherein the prices are established through an auction process.2. An option contract giving the owner the ...
    Read More »
  • Options Contract

    One options contract represents one hundred shares in the underlying stock. The quoted price of an option is per share.
    Read More »
  • Put

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option ...
    Read More »
    • Spread

      1. The difference between the bid and the ask price of a security or asset. 2. An options position established by purchasing one option and selling another option of the same class but ...
      Read More »
    • Strike Price

      The price at which a specific derivative contract can be exercised. Strike prices is mostly used to describe stock and index options, in which strike prices are fixed in the contract. ...
      Read More »
    • Expiration Date

      The last day on which an options or futures contract is valid. When an investor buys an option, the contract gives them the right but not the obligation to buy or sell an asset at a ...
      Read More »
    • Supply Chain

      The network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a good or ...
      Read More »
    • Forward Start Option

      The advance purchase of a put or call option with a strike price that will be determined at a later date, typically when the option becomes active. A forward start option becomes active ...
      Read More »

Articles Of Interest

Partner Links