Option Chain


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.

BREAKING DOWN '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.

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  3. Options Contract

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  4. Expiration Date (Derivatives)

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  6. Put

    An option contract giving the owner the right, but not the obligation, ...
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    The trading of options has become increasingly popular among retail investors as they become aware of the many different ... Read Full Answer >>
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  3. Can mutual funds invest in options and futures?

    Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
  4. How does a forward contract differ from a call option?

    Forward contracts and call options are different financial instruments that allow two parties to purchase or sell assets ... Read Full Answer >>
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    The primary risks associated with trading derivatives are market, counterparty, liquidity and interconnection risks. Derivatives ... Read Full Answer >>
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