How to Read an Options Chain

New to this? Every unfamiliar term links to the options glossary. All numbers below are hypothetical.

Written by the MarketWrench team. Examples are worked with the same Black-Scholes model used in our calculators (4% rate, no dividends unless stated) and are reviewed for accuracy before publishing. How we create content.

An options chain is the table your broker shows with every available option for a stock. It packs a lot of numbers into a small space, and it is where every trade starts. Here is a hypothetical chain with each part explained.

The layout

Most chains are split in the middle. Calls are on the left, puts on the right, and the strike prices run down the center. You first pick an expiration from a list of dates at the top, and the table shows options for that date only.

Annotated example chain HYPOTHETICAL

Made-up stock XYZ at $100.00, expiring in 30 days. Prices are from our Black-Scholes model at 30% IV. Volume and open interest are invented for illustration. Shaded cells are in the money.

CALLS						Strike	PUTS
Bid	Ask	Last	Vol	OI	Delta		Bid	Ask	Last	Vol	OI	Delta
10.55	10.85	10.70	42	1,210	0.90	90	0.37	0.43	0.40	310	4,880	−0.10
6.55	6.75	6.60	95	2,045	0.75	95	1.29	1.37	1.35	870	6,120	−0.25
3.54	3.64	3.60	1,940	8,330	0.53	100	3.21	3.31	3.25	1,620	7,450	−0.47
1.62	1.70	1.65	1,150	5,900	0.31	105	6.20	6.44	6.30	88	1,370	−0.69
0.63	0.69	0.66	760	4,410	0.15	110	10.10	10.48	10.30	15	640	−0.85

Column by column

Bid: The highest price a buyer is currently offering. If you sell, this is roughly what you get.
Ask: The lowest price a seller will accept. If you buy, this is roughly what you pay. The gap is the bid-ask spread. A limit order at the midpoint (for the $100 call, $3.59) often fills at or near that price on liquid options.
Last: The price of the most recent trade. It can be stale if the option hasn't traded for hours, so trust bid and ask over last.
Volume (Vol): Contracts traded today. It resets daily.
Open interest (OI): Open interest is the number of contracts currently open. Higher OI usually means easier trading and tighter spreads.
Delta: How much the option moves per $1 in the stock, and a rough guide to the chance of finishing ITM. Calls are positive, puts negative. See the Greeks.
IV: Many chains also show implied volatility per strike. Every IV here is 30% because it is a model example. Real chains usually show "skew," with higher IV on lower strikes.

Reading it: five quick lessons

Cost of one contract: buying the $100 call at the ask costs $3.64 × 100 = $364.
Shading shows moneyness: calls below $100 and puts above $100 are ITM. The $95 call has $5.00 of intrinsic value and about $1.60 of time value.
At-the-money is busiest: the $100 strike has the most volume and OI and the tightest spread relative to price.
Spreads widen away from the money: the $110 put's $0.38 spread is wider in dollars than the $100 put's $0.10.
Put-call parity: the $100 call ($3.59) is a little pricier than the $100 put ($3.26), mainly because of interest rates. Prices across a chain are linked, not random.

Building a trade from the chain

Bull put spread: sell the $95 put at the bid ($1.29) and buy the $90 put at the ask ($0.43). Net credit $0.86, or $86. Max loss is ($5 − $0.86) × 100 = $414. Notice that crossing the spread on both legs cost about $0.07 versus midpoint prices. See the bull put spread guide.

Checklist before you trade

Right expiration date selected? Check for earnings before it.
Spread less than about 5–10% of the option's price?
Open interest in the hundreds or more?
Using a limit order, not a market order?
Remembered the ×100 multiplier?

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FAQ

Why do bid and ask differ?
Market makers quote both sides and earn the gap for providing liquidity. Busier options have tighter spreads.

What is a good open interest?
There is no fixed rule, but beginners often stick to strikes with at least a few hundred contracts of OI.

Why doesn't 'last' match bid or ask?
Last is the most recent trade, which may have happened hours ago at different prices.

Not financial advice

This page is for educational and informational purposes only. It is not financial, investment, tax, or legal advice, and it is not a recommendation to buy or sell any security or to use any strategy. All examples use hypothetical numbers. Options involve risk and are not suitable for everyone. Do your own research and consider talking to a licensed professional before trading.