Options & F&OEducational13 min read

How to Read an Option Chain on NSE: Columns, OI, PCR and Max Pain Explained

Updated · BreakPoint Research Desk

Quick answer

An option chain is a table of every call and put option available for one underlying and one expiry. Calls are on the left, puts on the right, and strike prices run down the middle. For each strike you see the premium (LTP), open interest (OI), change in OI, volume and implied volatility (IV).

Traders read it mainly for positioning: strikes with the largest call OI are often treated as resistance and strikes with the largest put OI as support, the put-call ratio (PCR) summarises sentiment, and changes in OI show where fresh positions are being built during the day. These are clues about where participants are positioned, not predictions.

Key takeaways

  • Calls left, puts right, strikes in the middle — the at-the-money (ATM) strike is the one closest to the current price.
  • Open interest shows how many contracts are open; change in OI shows what was added or closed today.
  • Heavy call OI above the price is often read as a ceiling and heavy put OI below as a floor — until those positions shift.
  • PCR above 1 means more put OI than call OI; read it as context and compare it with its own recent range.
  • The option chain shows positioning, not intent. Always combine it with price action and the index chart.

What is an option chain?

An option gives the buyer the right, but not the obligation, to buy (call) or sell (put) the underlying at a fixed strike price on or before expiry. Because exchanges list many strikes and several expiries, the option chain organises them into one table per expiry so you can compare every strike at once.

On NSE’s website the option chain can be viewed for indices such as Nifty 50 and for stocks in the F&O segment. Most broker platforms show a similar layout.

CALLS (CE)STRIKEPUTS (PE)OIChg OILTPLTPChg OIOI18+1.234024,70022+5.27122+0.825824,80038+7.98431+2.118624,90064+4.66645+4.412425,000108+3.35862+6.87625,100168+1.13388+9.54225,200236−0.62154+3.12125,300320−1.412max call OImax put OISpot 25,012 · shaded = in the moneyOI in lakh contracts · premiums in ₹ · all numbers illustrative
A simplified Nifty option chain. Real chains show more columns (volume, IV, bid/ask) and many more strikes. All numbers are illustrative.

Every option chain column explained

ColumnWhat it meansHow traders use it
Strike priceThe price at which the option can be exercisedThe row everything else refers to
LTP (premium)Last traded price of that optionCost to buy / amount received when selling
OI (open interest)Number of contracts currently openWhere positions are concentrated
Chng in OIOI added (+) or closed (−) since the previous dayWhere fresh positions are being built today
VolumeContracts traded todayActivity; high volume with little OI change often means intraday churn
IV (implied volatility)Volatility implied by the option’s priceWhether options are relatively expensive or cheap
Bid / Ask (and qty)Best buy and sell quotesLiquidity — wide spreads make trading costly

ITM, ATM and OTM

TermCallsPuts
In the money (ITM)Strike below the current priceStrike above the current price
At the money (ATM)Strike closest to the current priceStrike closest to the current price
Out of the money (OTM)Strike above the current priceStrike below the current price

Many platforms shade the ITM side of the table, which is why the shading switches sides between calls and puts as you move up and down the strikes.

How to read support and resistance from the option chain

Call OIPut OI24,70024,80024,90025,00025,10025,20025,300spotcall wallput wallHeavy call OI often acts as a ceiling, heavy put OI as a floor — until it shifts · illustrative
Open interest by strike. The tallest call bar above the price and the tallest put bar below it are the levels option traders watch most.
  1. 1. Find the ATM strike

    Locate the strike nearest to the current index or stock price. Focus on roughly five strikes either side — far strikes matter less for the day.

  2. 2. Find the highest call OI above price

    A large build-up of call OI above the price is commonly read as a resistance zone, because option writers there benefit if the price stays below it.

  3. 3. Find the highest put OI below price

    A large build-up of put OI below the price is commonly read as a support zone for the opposite reason.

  4. 4. Watch change in OI during the day

    If put writers keep adding OI at higher strikes, support is moving up. If call OI starts building at lower strikes, resistance is moving down. The shift matters more than the snapshot.

  5. 5. Confirm with the price chart

    OI levels become useful when price reacts at them. A clean break through a heavy OI strike, with OI unwinding there, is a sign that level is giving way.

PCR and max pain: what they tell you (and what they don’t)

Put-call ratio (PCR) = total put open interest ÷ total call open interest for the expiry. A PCR above 1 means more put OI than call OI. Because put writing is often done by participants who expect the price to hold up, some traders read a rising PCR as supportive — but extreme readings can also mean positioning is crowded.

Max pain is the strike at which the total value of all outstanding options would be lowest for buyers at expiry. It is a calculation from the OI table, and some traders watch it into expiry. Prices do not reliably gravitate to it, especially when news moves the market.

Use as context, not as a signal

There is no universal “bullish PCR” number. Compare the current PCR with its own recent range for the same index, and never trade on PCR or max pain alone.

Worked example: reading a Nifty chain at 10:30 am

Hypothetical weekly Nifty expiry, spot 25,012

The chain shows the highest call OI at 25,200 with fresh additions, and the highest put OI at 24,800. Put writers are also adding at 24,900 and 25,000. The index is holding above its opening range.

Spot25,012
ATM strike25,000
Max call OI25,200
Max put OI24,800
Put OI adding at24,900–25,000
Price vs opening rangeAbove

How to read it

Positioning suggests a range with 25,200 as the ceiling option writers are defending and support moving up toward 24,900–25,000. For a directional trader this argues against chasing longs into 25,200 and in favour of watching how price behaves on dips toward 25,000. If price later breaks 25,200 while call OI there starts to fall, the ceiling is giving way.

The takeaway

The chain gave a map of where participants are positioned. Price action decided which part of the map mattered.

Common mistakes traders make

  1. Treating OI levels as guaranteed support and resistance

    Positions can be closed or rolled in minutes. A level is only as strong as the positions still sitting there.

  2. Reading far out-of-the-money strikes

    Deep OTM strikes carry cheap, lottery-style positions and say little about the day’s likely range.

  3. Ignoring change in OI

    Yesterday’s OI snapshot is stale. Today’s additions and reductions show what participants are doing now.

  4. Using PCR as a buy or sell trigger

    PCR summarises positioning; it does not time entries. Extreme readings can persist or reverse.

  5. Assuming every OI build-up is option writing

    OI rises whenever a new buyer and a new seller open a contract. The table alone does not tell you which side initiated the trade.

  6. Trading illiquid strikes

    Wide bid-ask spreads can cost more than the move you are trying to capture.

What to combine option chain analysis with

  • The index chart — opening range, VWAP and previous day high/low tell you whether price respects the OI levels.
  • Futures price and OI — rising price with rising futures OI is a different story from rising price with falling OI.
  • Implied volatility — rising IV makes options more expensive to buy; falling IV can hurt buyers even when direction is right.
  • Time to expiry — OI levels tend to matter more as expiry approaches.
  • Scheduled events — RBI policy, the Union Budget and global data can override any positioning.

How BreakPoint helps you read options positioning faster

Refreshing the option chain and tracking OI changes across strikes by hand is slow, especially across several stocks. These BreakPoint tools present positioning so you can focus on the chart. How any of them ranks or selects instruments stays private, and none gives buy or sell calls.

Where index option activity concentrates

Option Scanner shows call and put activity by strike for the index, so the levels the market is defending are visible at a glance.

How to use Options Analytics →

Stock options with the OI trend

OptionX shows F&O stocks that are moving alongside the open-interest trend behind each move (Pro 365).

How to use OptionX →

The F&O picture on one screen

The F&O dashboard brings together OI build-up, PCR and sentiment shifts across symbols (Pro 365).

How to use FNO Analytics →

Good to know

On the BreakPoint mobile app you can check options positioning during the session without keeping the exchange website open.

Who should use this approach?

Beginners in options

Learn the columns and ITM/ATM/OTM before placing any option trade — most early mistakes come from misreading the chain.

Index intraday traders

OI levels and their changes add useful context to the Nifty chart during the session.

Stock traders

Even if you never trade options, the chain for an F&O stock shows where derivatives traders are positioned.

Option sellers

Positioning and IV help choose strikes, but risk management matters far more than the table.

Limitations and risks

Read before you trade
  • Option chain data shows positions, not who opened them or why.
  • OI levels can shift quickly; a snapshot can mislead within minutes.
  • PCR and max pain are context indicators with no reliable trading threshold.
  • Options are leveraged and complex. SEBI studies have found that a large majority of individual F&O traders lose money — learn thoroughly before trading.

Which BreakPoint plan fits the way you trade?

Pick by workflow, not by feature count. You can change plans later.

Learning options

Free account

Use the exchange option chain and a free BreakPoint account for the guides and glossary while you learn the table.

Free

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Nifty intraday trader

Breakpoint Pro

Breakpoint Pro includes intraday option analytics for the index through Option Scanner, alongside Market Mover and HLC levels.

₹1,299 / 28 days · ₹3,299 / 84 days

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Stock options / F&O focus

Breakpoint Pro 365

Pro 365 adds OptionX for stock options and the full F&O dashboard suite — OI change, OI trend, PCR heatmap and more.

₹7,999 / 180 days · ₹15,999 / 365 days

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Still unsure? The 60-second product advisor asks four questions about how you trade and recommends one product. Prices as listed on the plans page; always confirm there before paying.

Frequently asked questions

Calls are on the left, puts on the right and strikes in the middle. Find the at-the-money strike, then look at open interest, change in OI, premium and implied volatility for strikes around it. The highest call OI above price and highest put OI below price are commonly watched as resistance and support.

See positioning without refreshing the chain

Open Option Scanner to see where index option activity is building, then confirm on the chart before you take a view.

BreakPoint tools open inside your account. If you are not signed in you will be asked to sign in first, and access depends on your active plan. The lessons and guides are free.

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Keep learning

Terms used here: Open Interest (OI) · PCR (Put-Call Ratio) · Strike Price · Support & Resistance from Options · Delta, Gamma, Theta · F&O (Futures & Options)

This article is for education only. It is not investment advice or a recommendation to buy or sell any security. Trading involves risk of loss; examples are hypothetical and past behaviour of any pattern does not guarantee future results.