ABBOTINDIA
Abbott India Limited
Max pain for ABBOTINDIA
18 Oct 2024 10:31 AM IST
Max Pain for ABBOTINDIA is 29000
Strike 27000 has a total call value of 0 versus a total put value of 1,818,000,000 Combined total value = 1,818,000,000
Strike 27250 has a total call value of 5,000,000 versus a total put value of 1,558,000,000 Combined total value = 1,563,000,000
Strike 27500 has a total call value of 10,000,000 versus a total put value of 1,298,000,000 Combined total value = 1,308,000,000
Strike 27750 has a total call value of 15,000,000 versus a total put value of 1,038,000,000 Combined total value = 1,053,000,000
Strike 28000 has a total call value of 20,000,000 versus a total put value of 778,000,000 Combined total value = 798,000,000
Strike 28250 has a total call value of 41,500,000 versus a total put value of 584,500,000 Combined total value = 626,000,000
Strike 28500 has a total call value of 68,000,000 versus a total put value of 391,000,000 Combined total value = 459,000,000
Strike 28750 has a total call value of 113,500,000 versus a total put value of 233,000,000 Combined total value = 346,500,000
Strike 29000 has a total call value of 159,000,000 versus a total put value of 94,000,000 Combined total value = 253,000,000
Strike 29250 has a total call value of 319,500,000 versus a total put value of 70,500,000 Combined total value = 390,000,000
Strike 29500 has a total call value of 529,500,000 versus a total put value of 47,000,000 Combined total value = 576,500,000
Strike 29750 has a total call value of 776,500,000 versus a total put value of 23,500,000 Combined total value = 800,000,000
Strike 30000 has a total call value of 1,023,500,000 versus a total put value of 0 Combined total value = 1,023,500,000
Strike 30250 has a total call value of 1,429,500,000 versus a total put value of 0 Combined total value = 1,429,500,000
Strike 30500 has a total call value of 1,835,500,000 versus a total put value of 0 Combined total value = 1,835,500,000
Strike 30750 has a total call value of 2,241,500,000 versus a total put value of 0 Combined total value = 2,241,500,000
Strike 31000 has a total call value of 2,647,500,000 versus a total put value of 0 Combined total value = 2,647,500,000
What is Max Pain?
Max pain, or the max pain price, is the strike price with the most open contract puts and calls - and the price at which the stock would cause financial losses for the largest number of option holders at expiration.
Calculating Max Pain
Max pain is a simple but time consuming calculation. Essentially, it is the sum of the outstanding put and call dollar value of each in-the-money strike price. For each in-the-money strike price for both puts and calls:
- Find the difference between stock price and strike price
- Multiply the result by open interest at that strike
- Add together the dollar value for the put and call at that strike
- Repeat for each strike price
- Find the highest value strike price. This price is equivalent to max pain price.
How can a trader benefit?
As the option expiration approaches, option writers will try to buy or sell shares of stock to drive the price toward a closing price that is profitable for them, or at least to hedge their payouts to option holders. Call writers sell shares to drive share price down and Put holders buy shares to drive share price up. The max pain strike price exists somewhere in the middle.
