How to Read an Options Chain

Whether a trader is looking to pad a long position by writing a covered
call or buy a protective put for shares that the trader has shorted,
knowing how to read an option chain should precede either one of these
potential strategies.

The option chain lists the available call and put strike prices for an
underlying security. It also lists the month of expiration for each
available option. It is important to keep in mind that one call option,
is a contract that gives the holder the option to purchase 100 shares of
the underlying security. A put option, is a contract that gives the
holder the options to sell 100 shares of the underlying security.