Option chain is a list of all available option contracts for a stock or an index. It shows all call and put options contracts with details such as expiration, strike price, volume and price in a single frame. The strike price is at the centre and all data pertaining to calls and puts on the same strike are presented next to each other. Normally, the calls are on the left side of the option chain and the puts are on the right side of the option chain.
Traders use the option chain to understand the dynamics and the direction of price movements. It also helps to identify which options contracts are liquid and which are illiquid. Normally it helps the traders to evaluate the depth and liquidity of specific strikes. An option chain helps a trader with the following information and data.
Last Traded price
Change in Open Interest