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Strikes, premiums, OI and volume: the part that actually matters
Published by The Retail Trader · AUG 09, 2026 · Features
An option chain looks like a colour-coded Excel sheet the first time you see it. But its structure is very simple: strikes in the middle, calls on one side, puts on the other. That's all.
The middle column holds the strike prices, rising from top to bottom. On one side is the call data for each strike, on the other side the put data. The rows around the spot price are the ATM zone — those are the most active ones.
Both sides have almost identical columns: last traded price, change, volume, and open interest. Most people get 90% of the work done by looking at just these four.
Premiums shrink as strikes move away from spot. If even an option only slightly away from spot looks almost free, the market doesn't expect that move at all. And if even the far strikes are expensive, the market is pricing in some big shock.
The difference is worth remembering:
• Volume — how many contracts traded today. It resets at the end of the day.
• Open interest — how many contracts are still open right now. It carries over from day to day.
• High volume but low OI — lots of coming and going during the day, but no position was built. Intraday activity.
• Rising OI — new positions are being built. This is where commitment shows up.
The call strike with the highest OI is often seen as a short-term resistance zone; the put strike with the highest OI as a support zone. The logic is that sellers have their biggest exposure at that level and try to defend it.
But don't turn this into a rule. These zones change every day, and one big piece of news can break through them in a single jolt. OI is a map, not a wall.
In far strikes there is often a big gap between bid and ask. You are in a loss the moment you enter there, purely because of the spread — without the market moving a single point.
So when choosing a strike, don't look only at the premium; also check whether it is actually trading. A cheap option that nobody is willing to buy back from you is not cheap.
This article is for educational purposes only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advice. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.