How to Read an Option Chain: OI, PCR, Max Pain and IV Explained
A plain guide to the columns of an option chain (premium, open interest, OI change, buildup, IV, Greeks) and the summary numbers PCR and max pain, with a live NIFTY chain to follow along.
The layout
Strike prices run down the middle. Calls (CE) are on the left, puts (PE) on the right. The strike closest to the current price is at-the-money (ATM); calls below it and puts above it are in-the-money.
Open interest and buildup
Open interest (OI) is the number of contracts still open. Rising OI with rising premium is called long buildup; rising OI with falling premium is short buildup; falling OI with rising premium is short covering; falling OI with falling premium is long unwinding. Strikes with the highest call OI and put OI are often watched as resistance and support zones.
PCR, max pain and IV
PCR (put-call ratio) is total put OI divided by call OI. Max pain is the strike where option buyers together would get the least at expiry. IV (implied volatility) shows how expensive premiums are; compare it with recent historical volatility. These are data points, not predictions.
How to do it on iTradeChart
- Open NIFTY → Option chain and pick the nearest expiry.
- Find the ATM strike (highlighted) and look at OI and OI change on both sides.
- Check the summary card for PCR, max pain and the highest OI strikes.
- Switch to Greeks to see IV, delta and theta, or open the combined premium chart.
No sign-up needed. Virtual money only.
Questions
Is a high PCR bullish?
Many traders read it that way, but PCR alone is not reliable. Treat it as one piece of information.
Where does the OI data come from?
From the exchange data feed; OI change is calculated against the previous day's close.
Can I trade from the chain?
Yes, tap any premium to open its chart and place a paper order.
For learning only. Paper trading uses virtual money. Nothing here is investment advice.