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What is option chain and how to read it — complete Hindi guide. PCR, OI analysis, max pain, option chain trading strategy all included.
Published by The Retail Trader · AUG 11, 2026 · Features
What is option chain and how to read it — complete Hindi guide. PCR, OI analysis, max pain, option chain trading strategy all included.
An option chain is a table that shows all the available options on a stock or index — calls, puts, etc. for each strike price.
Simple definition: > Option chain = complete menu of all options of Nifty or any stock. Like there is a menu card in a restaurant – prices, OI, volume of all options are written in the option chain.
Where to get Option Chain?:
• NSE India — nseindia.com → Option Chain
• TRT SUPERCHART — Select Stock → Option Chain
• Zerodha Kite — Option Chain Then
• Sensibull — Advanced option chain analysis
Basic Structure:
• CALLS (CE) PUTS (PE)
• OI Chg OI IV LTP Strike LTP IV Chg OI OI
• 5000 +200 15.2 180 20200 95 16.1 -300 8000
• 3000 +100 14.8 120 20100 110 15.5 -100 6000
• 8000 +500 14.5 80 20000 130 15.0 +200 10000 ← ATM
• 6000 -200 14.2 55 19900 165 14.8 +400 7000
• 4000 -100 13.8 35 19800 210 14.5 +600 5000
What does each column tell:
• OI — Full Form: Open Interest, what it tells: How many contracts are OPEN (active positions)
• Chg OI — Full Form: Change in OI, what it tells: How much has OI increased or fallen today?
• IV — Full Form: Implied Volatility, What it tells: Option's implied volatility (%)
• LTP — Full Form: Last Traded Price, What it tells: Current price of the option
• Strike — Full Form: Strike Price, what it says: exercise price of the option
• Volume — Full Form: Trading Volume, what it tells: How many contracts were traded today
PCR = Total Put OI / Total Call OI
Interpretation:
• > 1.5 — Meaning: Too many puts have been sold, Market Expectation: BULLISH (support strong)
• 1.0-1.5 — Meaning: Normal, slightly bullish, Market Expectation: Mildly bullish
• 0.7-1.0 — Meaning: Normal, slightly bearish, Market Expectation: Mildly bearish
• < 0.7 — Meaning: Too many calls have been sold, Market Expectation: BEARISH (resistance strong)
• > 2.0 — Meaning: Extreme, Market Expectation: Contrarian — reversal possible
How to use:
• PCR > 1.5 → Market support is strong → BUY on dips
• PCR < 0.7 → Market resistance is strong → SELL on rallies
• PCR extreme (>2.0 or <0.5) → Contrarian signal → reversal
Max Pain is the strike price where option buyers will suffer the most pain (loss) at expiry.
Formula: Calculate total OI per strike (calls + puts). Where highest OI = Max Pain.
How to use:
• Market moves towards Max Pain on expiry day
• Nifty Max Pain = 20,000 → High probability of Nifty closing near 20,000 on expiry day
Max Pain = Market maker's target. On expiry day, market makers push the level of Max Pain.
High Call OI = Resistance
Keep these two points in mind:
• Where highest call OI = strong resistance
• Call sellers will not know the vehicle price.
High Put OI = Support
Keep these two points in mind:
• Where highest put is OI = strong support
• Put sellers vehicle price will not fall
Example:
• 20,200 CE OI = 50,000 → STRONG RESISTANCE at 20,200
• 19,800 PE OI = 40,000 → STRONG SUPPORT at 19,800
• Expected range: 19,800-20,200
Call OI badha = Bearish signal
Keep these points in mind:
• New call sellers are coming → resistance is building
Put OI badha = Bullish signal
Keep these points in mind:
• New put sellers are coming → support is building
Call OI falls = Resistance is weakening
Keep these points in mind:
• Call sellers are exiting → resistance may be broken
Put OI falls = Support is getting weak
Keep these points in mind:
• Put sellers are exiting → support may be broken
Call IV is highest on ATM – Call IV falls on OTM and ITM.
Put skew: IV of OTM puts > IV of ATM puts → Market is downside fear
Call skew: IV of OTM calls > IV of ATM calls → Market is expecting upside
Setup:
• Look at the option chain → identify Support (high put OI) and Resistance (high call OI)
• Put sell at support (credit spread)
• Sell Call at Resistance (credit spread)
• Net credit = profit if market stays in range
Example:
• Support: 19,800 (high put OI)
• Resistance: 20,200 (high call OI)
• Sell 19,800 PE + Sell 20,200 CE
• Profit if Nifty stays between 19,800-20,200
Setup:
• There is high call OI on resistance (20,200 CE = 50,000 OI)
• If call OI suddenly decreases (call sellers exit)
• Resistance becomes weak → breakout expected
• BUY above 20,200
Confirmation: Call OI decrease + Price approaching resistance + Volume increase = Breakout signal
Setup:
• Identify Max Pain on expiry morning
• Market is well above Max Pain → Short (expect will go down)
• Market is well below Max Pain → Long (expect will go up)
• Target: Max Pain level
Caution: Expiry day is very volatile. Small position size + tight stop loss.
Setup:
• Price is going up but call OI is increasing
• Meaning: Call sellers are building resistance
• Price will be difficult to go up → SELL signal
Opposite:
• Price is going down but put OI is increasing
• Meaning: Put sellers are building support
• Price will be difficult to go down → BUY signal
OI is a signal – needs confirmation. Price action, volume, RSI — check everything.
High OI is strong support/resistance, but not guaranteed. OI may change dynamically.
OTM options decay very fast on expiry day (theta). Buying is extremely risky.
Option chain data lags (15-30 min delay on NSE). Need intraday real-time data — use Sensibull or broker terminal.
Keep these points in mind:
• 📌 OPTION CHAIN QUICK REFERENCE
• PCR (Put-Call Ratio):
• 📊 > 1.5 = BULLISH (strong support)
• 📊 1.0-1.5 = Mildly bullish
• 📊 0.7-1.0 = Mildly bearish
• 📊 < 0.7 = BEARISH (strong resistance)
• 📊 > 2.0 or < 0.5 = Contrarian (reversal)
• MAX PAIN:
• 📊 Market moves the price of Max Pain on expiry
• 📊 best reference for expiry day trading
• SUPPORT/RESISTANCE:
• 📊 High Put OI = Support (put sellers defending)
• 📊 High Call OI = Resistance (call sellers defending)
• 📊 OI increase = Level getting stronger
• 📊 OI decrease = Level getting weaker
• TRADING SIGNALS:
• ✅ High put OI + Price approaching → BUY support
• ✅ High call OI + Price approaching → SELL resistance
• ✅ Call OI decreasing near resistance → Breakout possible
• ✅ Put OI decreasing near support → Breakdown possible
• AVOID:
• ⚠️ Do not use OI alone — confirm price action
• ⚠️ Do not buy OTM options on expiry day
• ⚠️ Do not trade intraday on delayed OI data
Keep these five points in mind:
• What Are Option Greeks?
• What Is Implied Volatility?
• How Does F&O Expiry Work?
• The Math Of Option Buyer Vs Seller
• Iron Condor Strategy
The Retail Trader — educational market analysis. Not investment advice.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.