---
title: "How to Read an Options Chain"
description: "Learn how to read an options chain, including bid, ask, strike, volume, and open interest, so you can find the best setups for selling puts and covered calls."
author: "Adrian Rosebrock"
date: 2026-04-23
lastmod: 2026-04-23
canonical: https://wheelmetrics.io/blog/how-to-read-options-chain/
image: https://wheelmetrics.io/blog/how-to-read-options-chain/header.jpg
categories: ["Options Fundamentals"]
---

> For the complete WheelMetrics content index, see [llms.txt](https://wheelmetrics.io/llms.txt). This is the Markdown edition of https://wheelmetrics.io/blog/how-to-read-options-chain/.

# How to Read an Options Chain

By Adrian Rosebrock · Last updated April 23, 2026 · 13 min read

The first time I opened an options chain, I convinced myself I wasn't ready to trade yet.

Rows of numbers. Columns I couldn't name. Bid. Ask. OI. A grid of data that looked more like a spreadsheet from an accounting firm than anything that was supposed to help me make a trade.

I closed the tab and went back to reading about options theory, avoiding getting my hands dirty.

**An options chain is the table your brokerage displays showing every available contract for a stock, organized by expiration date, with calls on one side, puts on the other, and strike prices down the middle.** 

Each row shows a contract's bid, ask, last trade price, volume, and open interest.

That's it. Once you know what each column means, the wall of numbers becomes a tool you'll use for every single trade.

In [What Are Stock Options? A Beginner's Guide](https://wheelmetrics.io/blog/what-are-stock-options/), we introduced calls, puts, and the key terminology. 

Then, in [Understanding Options Contracts: Strike, Expiration, Premium](https://wheelmetrics.io/blog/options-contracts-strike-expiration-premium/), we unpacked how strike price, expiration, and premium define every contract.

Now we put that knowledge to work on a real screen.

**Table of Contents**

- [What Is an Options Chain?](https://wheelmetrics.io/blog/how-to-read-options-chain/#what-is-an-options-chain)
- [How to Read Every Column in the Options Chain](https://wheelmetrics.io/blog/how-to-read-options-chain/#how-to-read-every-column-in-the-options-chain)
  - [Strike](https://wheelmetrics.io/blog/how-to-read-options-chain/#strike)
  - [Bid and Ask](https://wheelmetrics.io/blog/how-to-read-options-chain/#bid-and-ask)
  - [Last and Change](https://wheelmetrics.io/blog/how-to-read-options-chain/#last-and-change)
  - [Volume and Open Interest (OI)](https://wheelmetrics.io/blog/how-to-read-options-chain/#volume-and-open-interest-oi)
  - [Putting It All Together](https://wheelmetrics.io/blog/how-to-read-options-chain/#putting-it-all-together)
- [How to Read Calls vs. Puts in the Options Chain](https://wheelmetrics.io/blog/how-to-read-options-chain/#how-to-read-calls-vs-puts-in-the-options-chain)
  - [Same Strike, Both Sides](https://wheelmetrics.io/blog/how-to-read-options-chain/#same-strike-both-sides)
  - [How Moneyness Flips Between Calls and Puts](https://wheelmetrics.io/blog/how-to-read-options-chain/#how-moneyness-flips-between-calls-and-puts)
- [What Are Volume and Open Interest (and Why Do They Matter)?](https://wheelmetrics.io/blog/how-to-read-options-chain/#what-are-volume-and-open-interest-and-why-do-they-matter)
  - [Volume (How Many Contracts Traded Today)](https://wheelmetrics.io/blog/how-to-read-options-chain/#volume-how-many-contracts-traded-today)
  - [Open Interest (How Many Contracts Are Currently Outstanding)](https://wheelmetrics.io/blog/how-to-read-options-chain/#open-interest-how-many-contracts-are-currently-outstanding)
  - [Why Volume and Open Interest Tell You About Liquidity](https://wheelmetrics.io/blog/how-to-read-options-chain/#why-volume-and-open-interest-tell-you-about-liquidity)
  - [Volume and Open Interest as Market Sentiment Signals](https://wheelmetrics.io/blog/how-to-read-options-chain/#volume-and-open-interest-as-market-sentiment-signals)
  - [Liquid vs. Illiquid (A Side-by-Side Comparison)](https://wheelmetrics.io/blog/how-to-read-options-chain/#liquid-vs-illiquid-a-side-by-side-comparison)
- [How to Select an Expiration Date in the Options Chain](https://wheelmetrics.io/blog/how-to-read-options-chain/#how-to-select-an-expiration-date-in-the-options-chain)
- [How to Use the Options Chain for the Wheel Strategy](https://wheelmetrics.io/blog/how-to-read-options-chain/#how-to-use-the-options-chain-for-the-wheel-strategy)
  - [Scanning the Chain for a Cash-Secured Put](https://wheelmetrics.io/blog/how-to-read-options-chain/#scanning-the-chain-for-a-cash-secured-put)
  - [Covered Calls (The Other Side of the Wheel)](https://wheelmetrics.io/blog/how-to-read-options-chain/#covered-calls-the-other-side-of-the-wheel)
- [Where to Go from Here](https://wheelmetrics.io/blog/how-to-read-options-chain/#where-to-go-from-here)

## What Is an Options Chain?

![Options chain](https://wheelmetrics.io/blog/how-to-read-options-chain/cde-calls-and-puts.png)

This is an options chain.

It's the table your brokerage displays showing all available options contracts for a given stock.

This screenshot is from my Schwab account. If you use a different broker (Fidelity, TD Ameritrade, Tastytrade, Interactive Brokers), your screen will look different, but the core information is identical. **The columns and data are universal. Only the arrangement changes.**

Here's a high-level overview of the layout:

- Calls on the left
- Puts on the right
- Strike prices down the middle
- Each row is a different strike price
- Each column contains a piece of data about that contract

The chain lets you compare every available contract at a glance so you can find the one that matches your outlook and risk tolerance.

## How to Read Every Column in the Options Chain

Let's walk through each column left to right, using the screenshot above as our reference.

_**Note:** I'm skipping Schwab-specific action columns (Build, Menu) because those are platform-specific. The columns below are what you'll find in every brokerage._

### Strike

The strike price is the price at which you can buy (call) or sell (put) the underlying stock if the option is exercised.

The chain lists multiple strikes. Each row is a different strike price.

**The strike column is your anchor.** 

Everything else in that row describes the contract at that _specific_ strike.

### Bid and Ask

- The bid is the highest price a buyer is currently willing to pay for this contract. **If you're selling an option, the bid is the price you'll receive.**
- The ask is the lowest price a seller is currently willing to accept. **If you're buying an option, the ask is the price you'll pay.**
- The gap between the bid and ask is the **bid-ask spread** (a measure of liquidity). Tighter spread equals more liquid, easier to get a fair price.

I go deeper on this in [Understanding Bid-Ask Spreads and Options Liquidity](https://wheelmetrics.io/blog/bid-ask-spreads-options-liquidity/).

### Last and Change

What about the "Last" column? That's the price at which the most recent trade occurred.

**It's _not_ the same as the current bid or ask.** It's _historical_, showing what someone _actually_ paid or received last.

This can be misleading on low-volume options where the last trade may have happened _hours_ or _days_ ago. 

**Always prioritize bid/ask over last when evaluating a contract.**

Change is how much the option's price has moved since the previous close. Quick directional indicator, nothing more.

### Volume and Open Interest (OI)

Volume is the number of contracts traded today for this specific strike and expiration.

Open interest (OI) is the total number of contracts currently outstanding for this specific strike and expiration.

These get their own deep dive below. For now, just know where they live in the chain.

### Putting It All Together

![Options chain](https://wheelmetrics.io/blog/how-to-read-options-chain/cde-calls-and-puts.png)

Let's read a single row from the screenshot.

**Look at the $22.50 strike call:**

- Bid: $2.20
- Ask: $2.35
- Last: $2.20
- Change: -$0.75
- Volume: 28
- OI: 222

**This one row gives you everything you need to evaluate this contract**, including its price, liquidity, recent activity.

- You know what someone will pay you to sell it ($2.20)
- You know what it costs to buy it ($2.35)
- You know it traded 28 times today and has 222 open contracts

That's the entire options chain, decoded.

(Not so intimidating once someone walks you through it.)

## How to Read Calls vs. Puts in the Options Chain

Take another look at the options chain screenshot above.

Calls are on the left. Puts are on the right. Strike prices sit in the center column (highlighted in blue on Schwab).

Both sides have the _exact same_ columns: 

- Bid
- Ask
- Last
- Change
- Volume
- OI

They mirror each other across the strike column.

### Same Strike, Both Sides

Compare the $22.50 strike on both sides:

| Column | $22.50 Call | $22.50 Put |
|--------|------------|------------|
| Bid | $2.20 | $2.30 |
| Ask | $2.35 | $2.45 |
| Last | $2.20 | $2.41 |
| Change | -$0.75 | +$0.41 |
| Volume | 28 | 56 |
| OI | 222 | 3,053 |

Same strike, different prices, because they represent _different_ rights/obligations.

Notice the OI difference: 222 on the call side vs. 3,053 on the put side. 

**Much more open interest on the puts at this strike.** 

That tells you where traders are positioning. It doesn't tell you *why* (they could be hedging, speculating, or selling premium), but it tells you where the action is.

### How Moneyness Flips Between Calls and Puts

**The same strike can be ITM for one side and OTM for the other.**

With `CDE` at ~$22:

- The $20 strike is ITM for calls (stock is above the strike) but OTM for puts (stock is above the strike)
- The $25 strike is OTM for calls (stock is below the strike) but ITM for puts (strike is above the stock price)

This is why your brokerage shades certain rows. In the screenshot:

- **Calls side:** Strikes below ~$22 are shaded (ITM)
- **Puts side:** Strikes above ~$22 are shaded (ITM)

**The shading flips from one side to the other.** Once you see this pattern, reading the chain clicks.

## What Are Volume and Open Interest (and Why Do They Matter)?

You've seen where volume and OI live in the chain. Now let's talk about why these two numbers matter more than most beginners realize.

### Volume (How Many Contracts Traded Today)

Volume resets to zero every trading day.

High volume means active trading. People are buying and selling this contract right now.

Low volume means few (or no) trades have happened today. You may have trouble getting filled at the price you want.

### Open Interest (How Many Contracts Are Currently Outstanding)

**OI does _not_ reset daily. It's a running total of all open positions.**

- OI increases when a new buyer and a new seller create a contract together
- OI decreases when an existing holder closes their position

High OI means there's an established market for this contract. Many traders have open positions at this strike and expiration.

### Why Volume and Open Interest Tell You About Liquidity

**These two numbers tell you whether you can get in and out of a trade at a fair price.**

The pattern:

- Low volume + low OI = wide bid-ask spreads (you pay more to enter, receive less to exit)
- High volume + high OI = tight bid-ask spreads (trade closer to the "true" value of the contract)

There are no hard thresholds for what counts as "good" volume or OI. 

Mega-cap stocks like `NVDA` or `MSFT` will have _thousands_ to _tens of thousands_ of contracts at popular strikes. 

A smaller stock like `CDE` will naturally have lower numbers.

**That said, it's the _relative context_ that matters, not a magic number.** Compare volume and OI across strikes within the same chain to see which contracts are actively traded vs. which are ghost towns.

### Volume and Open Interest as Market Sentiment Signals

Where volume and OI cluster tells you where other traders are positioning.

Heavy OI at a particular strike may indicate a level traders view as significant (support, resistance, or a popular target).

Don't over-read this. It's one data point, not a crystal ball. But it's worth noticing patterns over time.

### Liquid vs. Illiquid (A Side-by-Side Comparison)

![CDE puts chain](https://wheelmetrics.io/blog/how-to-read-options-chain/cde-strikes.png)

This is where the concept clicks for most people.

Here's the puts side of the `CDE` chain for the Apr 17 expiration. Compare two strikes:

| Column | $20.00 Put (Liquid) | $12.50 Put (Illiquid) |
|--------|--------------------|-----------------------|
| Bid | $1.15 | $0.00 |
| Ask | $1.25 | $0.25 |
| Spread | $0.10 | $0.25 (the entire ask price) |
| Last | $1.24 | $0.17 |
| Change | +$0.21 | +$0.10 |
| Volume | 152 | 0 |
| OI | 874 | 0 |

The $20 strike has volume of 152 and OI of 874. This appears to be an actively traded contract, with a tight $0.10 bid-ask spread.

Now look at the $12.50 strike: volume is 0, OI is 0, and the spread widens to $0.25 (which is the entire ask price).

**Nobody is trading this contract.** If you tried to sell it, there's literally no buyer on the other side. The bid is $0.00.

Same stock. 

Same expiration. 

Wildly different ability to actually trade the contract.

## How to Select an Expiration Date in the Options Chain

We covered weekly vs. monthly vs. LEAPS expirations in [Understanding Options Contracts: Strike, Expiration, Premium](https://wheelmetrics.io/blog/options-contracts-strike-expiration-premium/). 

Here's the short version:

- Longer expirations (more DTE) equals more premium, but more time for the trade to move against you
- Shorter expirations (less DTE) equal less premium, but shorter exposure window
- For [Wheel Strategy](https://wheelmetrics.io/blog/wheel-strategy-guide/) traders, 30-45 DTE is a common starting point where theta decay accelerates
- Some traders prefer 7-15 DTE for quicker turnover

So how do you actually find and navigate expirations in the chain?

![CDE options chain expirations](https://wheelmetrics.io/blog/how-to-read-options-chain/cde-options-available.png)

The chain groups contracts by expiration. Each expiration is a collapsible section showing all available strikes for that date.

The DTE number tells you how many calendar days remain until that expiration. 

For example, "Fri: 37 days" means 37 calendar days until the contract expires on that Friday.

Your brokerage may display expirations differently (tabs, dropdown, calendar) but the same information is there.

## How to Use the Options Chain for the Wheel Strategy

**Reading the chain is _step one_ of the trade process, not the _whole_ process.** 

You're scanning and evaluating. You are _not_ ready to pull the trigger yet.

Delta, implied volatility, and historical volatility still need to be factored in before entering a trade. But chain reading is where every trade begins.

Let me show you exactly how I'd scan for a cash-secured put.

### Scanning the Chain for a Cash-Secured Put

![CDE puts options chain](https://wheelmetrics.io/blog/how-to-read-options-chain/cde-strikes.png)

Above is the puts chain for `CDE` again for reference.

If I wanted to sell a CSP on `CDE` right now, here's how I'd read this chain:

- **Step 1: Pick an expiration:** I'm looking for 30-45 DTE, so I'd expand the Apr 17 expiration (37 days).
- **Step 2: Find the OTM put strikes:** These are strikes below the current stock price (~$22), where I'd be comfortable owning the stock if assigned.
- **Step 3: Check the premium:** At the $20 strike, the bid is $1.15 ($115 per contract). I ask myself, _"Is $115 worth the obligation to buy 100 shares at $20 ($2,000 commitment)?"_
- **Step 4: Check volume and OI:** At the $20 strike, volume is 152 and OI is 874, with a tight $0.10 bid-ask spread. Fair fill territory.
- **Step 5: Pause:** _This is where chain reading ends and deeper analysis begins._ I still need to evaluate delta (what's my probability of assignment?) and IV vs. HV (is the premium rich or cheap relative to expected movement?)

Each of those gets its own guide: [the probability of assignment](https://wheelmetrics.io/blog/understanding-delta-wheel-strategy/), [whether the premium is rich or cheap](https://wheelmetrics.io/blog/what-is-implied-volatility/), and [how IV compares to historical volatility](https://wheelmetrics.io/blog/implied-vs-historical-volatility/).

**Step 5 is the most important step.** The chain gives you the raw data. Delta and IV give you the analytical framework to decide whether to act on it.

Here's a quick-reference checklist for scanning the chain for a CSP:

- **✅ Expiration:** 30-45 DTE (or your preferred range)
- **✅ Strike:** OTM, at a price you're willing to own the stock
- **✅ Premium:** Bid high enough to justify the obligation
- **✅ Volume/OI:** Sufficient liquidity for a fair fill
- **✅ Then:** Evaluate delta and IV/HV before entering (covered in dedicated articles)

### Covered Calls (The Other Side of the Wheel)

Once you're assigned on a CSP and own the shares, you sell covered calls. The chain reading process is the same, just flipped.

Now you're looking at the calls side of the chain, scanning OTM strikes _above_ the current price.

You want a strike above your cost basis so if called away, you sell at a profit.

**Same checklist applies:** expiration, strike, premium, volume/OI, then delta and IV/HV.

Covered calls get their own dedicated articles, but the chain mechanics you just learned transfer directly.

## Where to Go from Here

You can now:

- Open an options chain and know exactly what you're looking at
- Read every column in the chain, including strike, bid, ask, last, change, volume, open interest
- Compare calls vs. puts side by side and understand how moneyness flips between them
- Assess liquidity by checking volume and OI before entering a trade
- Identify the contract you want and evaluate whether it's worth trading

**Reading the chain is the foundation for _every_ trade you'll make when running The Wheel Strategy.**

Your next step is [the forces that move option prices](https://wheelmetrics.io/blog/options-greeks-explained/), and you can always work back through the [complete options fundamentals path](https://wheelmetrics.io/blog/options-fundamentals-complete-guide/) for the full sequence.

Now you know what every column means, how to compare calls and puts, how to spot liquidity (and avoid the dead zones), and how to start scanning for real trades.

**Every trade you'll ever place starts with reading this screen.** You just learned how.

## Frequently Asked Questions

**What is an options chain?**

An options chain is the table your brokerage displays showing all available contracts for a stock, organized by expiration date. Calls appear on one side and puts on the other, with strike prices in the middle. Each row shows a contract's bid, ask, last trade price, volume, and open interest.

**What do the columns in an options chain mean?**

The core columns are: (1) strike — the price level of the contract, (2) bid — what buyers will pay, (3) ask — what sellers want, (4) last — the most recent trade price, (5) change — today's price movement, (6) volume — contracts traded today, and (7) open interest — total outstanding contracts at that strike and expiration.

**What is the bid-ask spread in options?**

The bid-ask spread is the difference between the bid price and the ask price. A tight spread means the contract is liquid and you can trade at a fair price. A wide spread indicates poor liquidity, meaning you'll pay more to enter and receive less when you exit.

**What is open interest in options trading?**

Open interest is the total number of open (outstanding) contracts for a specific strike and expiration. Unlike volume, open interest does not reset daily — it is a running total. High open interest indicates an actively traded contract with established positions on both sides.

**How do you tell if an option is liquid?**

Check volume and open interest. High volume and high OI typically mean tight bid-ask spreads and fair fills. Low or zero volume with zero OI means you may struggle to find a counterparty for your trade — and the bid-ask spread will likely be wide.

**What is the difference between volume and open interest?**

Volume counts contracts traded today and resets to zero each trading day. Open interest counts total outstanding contracts and carries over day to day. Volume shows current activity; open interest shows accumulated positioning over time.

**How do you read calls and puts in an options chain?**

Calls appear on the left side and puts on the right, with strike prices in the center column. Both sides display the same columns (bid, ask, last, change, volume, OI). The same strike can be ITM for calls and OTM for puts (or vice versa) depending on the current stock price.

**What expiration should I choose when selling options?**

For Wheel Strategy traders, 30-45 DTE is a common starting point where theta decay accelerates and premium is still meaningful. Some traders prefer 7-15 DTE for quicker turnover with shorter exposure windows. Longer expirations collect more premium but expose you to more risk over a longer time horizon.

**How do you use an options chain to sell a cash-secured put?**

The process is: (1) pick an expiration in the 30-45 DTE range, (2) find OTM put strikes below the current stock price at a level you'd be comfortable owning shares, (3) check the bid and ask for your premium, (4) verify volume and OI for sufficient liquidity, then (5) evaluate delta and implied volatility before entering the trade.

**How do you identify ITM and OTM contracts in an options chain?**

Compare each strike price to the current stock price. For calls, strikes below the stock price are ITM and strikes above are OTM. For puts, it's the opposite — strikes above the stock price are ITM and strikes below are OTM. Most brokerages visually distinguish ITM from OTM contracts (often with shading or color), but the underlying logic is always the same: does the strike have intrinsic value relative to where the stock is trading right now?


## Related articles

- [Understanding Delta: The Most Important Greek for The Wheel Strategy](https://wheelmetrics.io/blog/understanding-delta-wheel-strategy/)
- [The Options Greeks Explained: Delta, Theta, Gamma, Vega](https://wheelmetrics.io/blog/options-greeks-explained/)
- [Understanding Options Contracts: Strike, Expiration, Premium](https://wheelmetrics.io/blog/options-contracts-strike-expiration-premium/)

## About the author

**Adrian Rosebrock**, Founder, WheelMetrics. Hi there, I'm Adrian Rosebrock, PhD. I believe trading and investing should be systematic, not speculative. I built WheelMetrics to share the quantitative research and frameworks behind my Wheel Strategy process. My goal is to help you make smarter, more confident trading decisions. [Connect on LinkedIn](https://www.linkedin.com/in/adrian-rosebrock/)


## Disclaimer

WheelMetrics is an educational resource, not financial advice. WheelMetrics is not a registered investment advisor, broker-dealer, or financial planner. Everything here, including articles, newsletters, stock screening results, options setups, market commentary, is for educational and informational purposes only. Options trading carries substantial risk, and you can lose some or all of your capital. You're solely responsible for your own investment decisions. Consult with a qualified financial advisor before making any trades.


---

*WheelMetrics content is educational and is not individualized financial advice. Source: https://wheelmetrics.io/blog/how-to-read-options-chain/*