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Options Premium Chart: CE and PE Premiums by Strike

The option chain lists premiums one row at a time. Stolo's options premium chart draws them as a curve: the call premium and the put premium across every strike of an expiry, on one chart. That turns the pricing structure of the chain, the volatility skew and any mispriced strike, into something you read at a glance.

The problem it solves​

Comparing premiums strike by strike is slow, and the pattern that matters, how premium falls as you move away from the money and how the put side is priced richer than the call side, is invisible in a table. The premium chart makes the shape visible, so you can see where options get expensive, where the skew sits, and which strike is trading off the curve.

The concept​

  1. Premium is intrinsic value plus time value. Deep in the money it is mostly intrinsic; at and out of the money it is mostly time value.
  2. The curve bends around the money. Premium falls steeply as you move out of the money, which is the price of buying probability against you.
  3. The put side is usually fatter. Out-of-the-money puts cost more than equidistant calls because the market pays up for downside protection. That asymmetry is the skew.
  4. Outliers are information. A strike above or below the smooth curve is seeing unusual demand or supply.

Key terms explained​

TermWhat it means
PremiumThe price of the option, its last traded price.
Intrinsic valueHow far in the money the option is.
Time valueThe part of the premium that is not intrinsic, driven by time and volatility.
SkewThe asymmetry of premium and IV across strikes, usually richer on OTM puts.
Rich / cheap strikeA strike trading above or below the curve its neighbours form.
ATM crossoverWhere the call and put curves meet, near the current price.

A worked example​

NIFTY is at 22,000, weekly expiry. On the premium chart:

  • The 22,000 CE and PE cross at about 90 each. That is the ATM point.
  • The 21,700 PE is trading at 45, while the 22,300 CE, the same distance out, is only 28. The put skew is clear: the market is paying a 60 percent premium for downside protection.
  • The 21,600 PE sits noticeably above the curve its neighbours form, at 40 versus an expected 32. Someone is buying that strike as a hedge.

A trader wanting cheap downside exposure notes the put skew makes buying puts expensive here, and might use a put spread instead to offset the cost. A trader selling premium sees the rich 21,600 PE as a strike worth writing against.

How to use it in Stolo​

Options Premium Chart in Stolo
  1. Open Analysis, then Options, then Options Premium Chart.
  2. Choose the instrument and expiry.
  3. Read the call and put premium curves together. The crossover is the money.
  4. Look at the shape: how steeply premium falls out of the money, and how much fatter the put side is.
  5. Spot any strike off the curve, which flags unusual demand there.
  6. Hover a strike for the exact CE and PE premium, and load a past date to see how the skew has changed.
tip

Check the put skew before buying puts outright. When it is steep, a put spread often gives similar protection at a much lower cost.

How traders use it​

  • Strike selection for buyers. See the leverage-versus-probability trade-off as you move out of the money.
  • Spread construction. Find where the premium gap between two strikes is widest for the best credit.
  • Skew read. A steepening put skew is a cautious sign even when price is rising.
  • Mispricing. Write against a strike trading rich versus its neighbours, or buy one trading cheap.

Live mode and history mode​

Live mode updates the premium curves through the session. History mode loads the curve for a past date, so you can study how the skew shifted around a previous event.

Frequently asked questions​

What does the options premium chart plot?
It plots the current call premium and put premium for every strike of a selected expiry as a chart, with strikes on the horizontal axis. Instead of reading premiums off the option chain row by row, you see the whole premium curve and where it bends.
What is the volatility skew and how do I see it here?
Skew is the pattern of implied volatility, and therefore premium, across strikes. On this chart it shows as the put curve being fatter on the downside than the call curve is on the upside, because traders pay more for out-of-the-money puts as crash protection. A steepening put skew is a caution signal.
How do I spot a rich or cheap strike?
Look for a strike whose premium sits above or below the smooth curve its neighbours form. A strike trading richer than the strikes around it is being bid up, often because of directional flow or heavy demand for a hedge at that level. A cheap strike relative to its neighbours can be a better entry for a buyer.
How is this different from the option chain?
The option chain lists the premium as one number per strike. The premium chart draws all those numbers as a curve, so the shape, the skew and any outlier strike are obvious. Use the chain for exact values and the premium chart to see the pricing structure.
Does the premium chart update live?
Yes. The call and put premium curves update in real time during market hours, and hovering any strike shows the exact CE and PE premium at that point.
Can I use it for stocks as well as indices?
Yes, for any F&O instrument. The curve is smoothest on liquid chains such as NIFTY and BANKNIFTY; on a thin stock chain a few strikes may sit off the curve simply from low activity rather than any real signal.
Where is the at-the-money point on the chart?
It is where the call and put curves cross, near the current price. At that strike the call and put premiums are roughly equal. As you move away from it, one side becomes intrinsic-value-heavy and the other becomes pure time value.
How does this help me choose a strike?
For a directional trade, the chart shows how quickly premium falls as you go further out of the money, which is the cost of buying leverage versus probability. For a spread, it shows where the premium difference between two strikes is widest, which is where a credit spread collects the most.
Can I view a past session?
Yes. Load a past date to see the premium curve as it stood then, which is useful for studying how the skew changed around an event.
Which plan includes the options premium chart?
It is part of Stolo's paid analysis access and can be tried on the Trial plan, which starts at 499 rupees. See the subscription plans page for the current tiers.

See the premium curve, not just the numbers

Open Stolo's Options Premium Chart to plot call and put premiums across every strike and read the skew at a glance.

Start with the Trial Plan at just ₹499
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