The story so far🛫 The option chain looks like an airport departures board. You only need to read three columns.

The option chain is the grid of all contracts for one share. In IBKR Mobile, open a share and tap Options. In TWS, use OptionTrader or the Option Chain window.

‹Search⋯

🔍 XYZ

XYZXYZ Corp · NASDAQ · Stock

100.00+0.42%

BuySellOptions

Illustration for learning · not a real broker screen · XYZ is a made-up share

1️⃣ Type the share name, open it, tap Options.

‹Option chain⋯

XYZ 100.00 +0.42%

7 days35 days63 days

CALLS			PUTS
Bid	Ask	Strike	Bid	Ask	Chance
10.80	11.00	90	0.50	0.60	-0.10
8.60	8.80	92.5	0.90	1.00	-0.17
6.60	6.80	95	1.45👆	1.55	-0.25
4.80	5.00	97.5	2.30	2.40	-0.36
3.40	3.60	100	3.35	3.45	-0.49
2.20	2.35	102.5	4.85	5.05	-0.63

Illustration for learning · not a real broker screen · XYZ is a made-up share

2️⃣ Pick about 35 days. Find strike 95. Tap the put Bid to start a sell order. The Chance column is delta.

Expiries run across the top. Pick one first.
Strikes run down the middle, calls on one side, puts on the other.
Bid is what buyers will pay. Ask is what sellers want.
Volume is contracts traded today. Open interest is contracts currently in existence.

Before selling anything, check liquidity.

Open interest in the hundreds or more at your strike.
A bid-ask spread that is a small fraction of the premium.
Strikes at regular, close intervals.

A chain quoted 1.45 by 1.55 is healthy. A chain quoted 0.90 by 1.80 is a trap: you would give away a large share of your income just getting in and out.

💡 RememberLiquidity is a selection rule, not a detail. If the chain is thin, the share is not suitable for selling options, however much you like the company.

🧵 You will be coming back to the same chains again and again. Choose chains worth returning to.