InvestorQ : What is an option chain in currency contract?
manisha Kolvenkar made post

What is an option chain in currency contract?

Answer
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Mahima Roy answered.
2 years ago


What exactly is an option chain and how do you use it? An option uses the strike prices as the central pivot point and then plots all the critical data pertaining to options with calls on one side and puts on the other side. The picture below captures the option chain for the USDINR contract for the December series, since the November series has expired. For each strike, the option chain also captures the best bid and best ask prices. IN addition the IVs are captured and the VIX is actually drawn from this kind of an option chain. This chain also makes it very easy to track the complete IVs and the strike wise OI accumulation and the OI change whether on the positive side or the negative side.

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The in-the-money options have been shaded in yellow. On the left the yellow shaded contracts are ITM calls while on the right the yellow shaded contracts are ITM puts. The un-shaded portion represents the OTM calls and puts.