Nifty Automated Option Chain (Monthly)
What is an Option chain / Automated option chain
Nifty automated option chain ? What Is an Options Chain?
Options chain, also known as an options table, listing for a single underlying stock that shows all of the available option contracts. It shows all listed calls, puts, strike prices, and volume expiration date, and pricing information for a single underlying asset within a given maturity or expiry. Option chain will typically be classified by expiration date and divided by calls and puts.
Understanding an option
An option is a contract that gives the right, but not a commitment (duty) to buy or sell the underlying asset (stock) on or before a stated date /day, at a stated price, for a price the trader taking a long position, buying the option is called buyer of the option and the trader taking a short (sell) position that is selling the option is called seller or writer of the options.
The option buyer has the right but no commitment with regards to buying or selling the underlying asset (stock), while the option seller (writer) commits in the contract. Therefore, the option buyer will exercise, his option only when the situation is favorable to him, but when he decides to exercise, the option writer would be legally bound to honor the contract.
Option terminology
There are many terms used in the option market let me explain with the help of price.
Nifty Call Option:
- Instrument type: Option Index ( Nifty)
- Underlying asset: Nifty
- Expiry date: April 22, 2021
- Option type: European Call Option
- Strike price: 14300
- Close price: 82.15
- Open price: 194.8
- High price: 269.25
- Low price: 55.50
- Volume (contract): 4,89,000
- Trade value (Lakhs): 40,570
- Trade value Notional (Lakhs): 52,85,138
- VWAP: 110.62
- Market lot: 75
- Open Interest (Contracts): 29,922
- Change in open Interest: 6,480
- % Change in Open Interest: 27.64
- Daily Volatility: 1.49
- Annualized Volatility: 28.56
- Implied Volatility: 19.16
- underlying 14250
Nifty Put Option:
- Instrument type: Option Index ( Nifty)
- Underlying asset: Nifty
- Expiry date: April 22, 2021
- Option type: European Put Option
- Strike price: 14300
- Close price: 96.8
- Open price: 65
- High price: 145.65
- Low price: 36.9
- Volume (contract): 10,21,202
- Trade value (Lakhs): 55,474
- Trade value Notional (Lakhs): 1,10,07,865
- VWAP: 72.43
- Market lot: 75
- Open Interest (Contracts): 34,750
- Change in Open Interest: 1,550
- % Change in Open Interest: 4.67
- Daily Volatility: 1.49
- Annualized Volatility: 28.56
- Implied Volatility: 24.66
- Underlying 14250
Some more terminology of Option & option chain
Index options: Index options have an index (Nifty, Bank nifty, Fin Nifty) as the underlying asset.
Stock Option: Stock options have the individual stocks as the underlying assets. Example options of Reliance, HDFC, Axis Bank, TCS, etc.
Buyer of option: The buyer of an option has a right but not the obligation or commitment in the contract for owning the right; the buyer pays a price (premium) to the option seller.
Seller of option: The seller (writer) of an option receives the option premium and is therefore obliged to sell or buy the asset if the buyer of the option exercises his right.
American option: The owner of the American option can exercise his right at any time before or on the expiry day of the contract.
European option: The owner of the European option can exercise his right only on the expiry day of the contract.
Option premium/price: Option premium is the price which option buyer pays to the option seller (writer). For example, the price for the call option is 82.15 and for put, the option is 96.80 for strike 14300.
Call price multiply by lot size means, 82.15*75=6161.25 total premium
Put price multiply by lot size means, 96.80*75=7260 total premium
Lot Size: Lot size is the number of units/shares of the underlying asset in a contract. The example lot size of Nifty contract is 75.
Call price multiply by lot size means, 82.15*75=6161.25
Put price multiply by lot size means, 96.80*75=7260
Expiration date: The day on which a derivative contract exists. It is the last trading day/date of the contract. As you see in the above example the expiration day of the nifty / Bank nifty contract is every Thursday as well as for weekly / monthly and stocks options last Thursday of every month.
Spot price: Spot price is the price at which the underlying asset trades in the spot market. In the above example, it is the value of underlying that is 14250.
Strike price: Also called exercise price, it is the price for which the underlying
Stocks may be purchased or sold by the option holder in the above example strike price for call option and put option is 14300.
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