It proves useful for assessing the depth and liquidity of specific strikes. It aids traders to find option premium against its corresponding maturity date and strike price. Option chain serves as a warning against breakouts or sharp moves in the index.
How It Works: A long straddle options strategy involves simultaneously buying a call option and a put option on the same underlying asset with the same strike price and expiration date. This strategy becomes profitable when the stock significantly shifts in one direction or another.