How is Max Pain Calculated?

Max Pain is calculated by determining the total dollar value of in-the-money options at each strike price. For each strike price: Calculate the difference between the current stock price and the strike price. Multiply this difference by the open interest (number of contracts) at that strike for both call and put options. Sum the values: Add together the dollar value for put options and call options at each strike price. Repeat for all strikes: Perform this calculation for every available strike price in the option chain. Identify the maximum: The strike price with the highest combined dollar value is the Max Pain price. This calculation helps identify the price level where option writers would face the maximum financial loss if the stock closes at that price on expiration day.

How Can Traders Use Max Pain in Their Strategy?

Traders can incorporate Max Pain analysis into their trading strategy in several ways: Expiration Day Trading: As option expiration approaches, traders can use Max Pain as a potential support or resistance level, as market makers may attempt to push the price toward this level. Option Selection: Understanding Max Pain helps traders choose strike prices that are less likely to be manipulated, potentially improving their option trade outcomes. Risk Management: If a stock is trading far from Max Pain before expiration, traders can anticipate potential price movement toward this level and adjust their positions accordingly. Market Sentiment Indicator: Comparing the current stock price to Max Pain can provide insights into market sentiment and potential price direction near expiration. Hedging Strategy: Option writers can use Max Pain to identify strike prices where they might face the least payout risk, helping them structure more efficient hedging strategies.

What Does Max Pain Indicate About Stock Price Movement?

Max Pain provides insights into potential stock price behavior, especially near option expiration: Price Magnet Effect: If the stock price is significantly above or below Max Pain before expiration, there may be a tendency for the price to move toward Max Pain as expiration approaches, as option writers hedge their positions. Support/Resistance Level: Max Pain can act as a psychological and technical support or resistance level, especially on expiration day, as it represents the price where maximum option value would be lost. Volatility Indicator: A large gap between current price and Max Pain may indicate higher potential volatility or price movement as expiration nears. Market Maker Activity: Significant open interest concentration around Max Pain suggests where market makers might have the most incentive to influence price movement through their hedging activities. Note: Max Pain is a theoretical concept and should be used in conjunction with other technical and fundamental analysis tools, as it does not guarantee price movement.

How Often Does Max Pain Change?

Max Pain is a dynamic value that changes continuously based on several factors: Open Interest Changes: As traders open and close option positions, the open interest at different strike prices changes, which directly affects the Max Pain calculation. Stock Price Movement: As the underlying stock price moves, different strike prices become in-the-money or out-of-the-money, altering the dollar value calculations. Time Decay: As expiration approaches, the time value of options decreases, but the intrinsic value calculations for Max Pain continue to evolve with price movements. New Option Contracts: When new strike prices are added or when significant new positions are opened, Max Pain may shift to reflect the new distribution of open interest. For accurate Max Pain analysis, traders should monitor it regularly, especially in the days leading up to expiration, as it can shift significantly as market conditions and option positions change.

What's the Difference Between Max Pain and Spot Price?

Max Pain and Spot Price are two distinct concepts that serve different purposes in options trading: Spot Price (Current Market Price): This is the current trading price of the underlying stock or index in the market. It represents the real-time value at which the asset can be bought or sold immediately. Max Pain Price: This is a calculated theoretical price level based on option open interest data. It represents the strike price where option writers would face minimum payout obligations, not necessarily where the stock is currently trading. The relationship between these two prices is crucial: when the spot price is far from Max Pain, traders may anticipate potential price movement toward Max Pain as expiration approaches. However, this is not guaranteed, and many other factors influence stock price movement.

Is Max Pain Always Accurate for Predicting Stock Price?

No, Max Pain is not always accurate and should not be used as the sole indicator for predicting stock price movement. Here's why: Market Forces: Strong fundamental news, earnings reports, or significant market events can override the Max Pain effect and drive prices in unexpected directions. Institutional Activity: Large institutional trades, algorithmic trading, and other market participants may have different objectives than minimizing option payouts. Limited Influence: While market makers may attempt to influence price toward Max Pain, their ability to do so is limited, especially in highly liquid stocks with strong directional momentum. Multiple Expirations: Stocks often have options expiring on different dates (weekly, monthly), which means multiple Max Pain levels may exist simultaneously, reducing the predictive power of any single level. Statistical Tool: Max Pain is best viewed as a statistical tool that provides context about option market dynamics rather than a guaranteed price target. Traders should use Max Pain as one of many tools in their analysis, combining it with technical analysis, fundamental analysis, and market sentiment indicators for more comprehensive decision-making.

When is Max Pain Most Relevant for Options Trading?

Max Pain becomes increasingly relevant as option expiration approaches: Last Trading Week: Max Pain analysis is most useful during the final week before expiration, when option writers are actively hedging and the "pinning effect" (price movement toward Max Pain) is most likely to occur. Expiration Day: On the day of expiration, Max Pain can serve as a key reference level, as market makers may attempt to keep the stock price near this level to minimize their payout obligations. High Open Interest: Max Pain is more reliable when there is significant open interest concentrated around specific strike prices, as this indicates where option writers have the most exposure. Low Volatility Periods: During periods of low market volatility, Max Pain may have a stronger influence, as there are fewer competing forces driving price movement. Monthly Expirations: Monthly option expirations (typically the third Friday) often show stronger Max Pain effects compared to weekly expirations, due to higher open interest and more significant market maker involvement. While Max Pain can be calculated at any time, its predictive value and practical application increase significantly as expiration approaches, making it particularly useful for short-term trading strategies focused on expiration week dynamics.

ADANIENT

Q: What is Max Pain in Options Trading?

Max Pain, also known as the max pain price, is the strike price at which the maximum number of option contracts (both puts and calls) would expire worthless, causing the largest financial losses for option holders at expiration. This price point represents the level where option writers would experience the least payout obligation. The max pain theory suggests that as expiration approaches, market makers and option writers may attempt to influence the stock price toward this level to minimize their payout obligations, making it a significant reference point for traders analyzing option expiration dynamics.

Adani Enterprises Limited

2161 -53.00 (-2.39%)

L: 2145 H: 2216

Max Pain - ADANIENT

09 Jan 2026 02:56 PM IST

Expiry

Max-Pain

2,240

DFC

7D Avg

Reliability

14D Avg

Reliability

21D Avg

Reliability

Max Pain for ADANIENT is 2240

Historical data for ADANIENT-2240-CE

LTP (2240 CE)

26 -18.8

Open Interest

1588 40

Historical data for ADANIENT-2240-PE

LTP (2240 PE)

99.5 33.95

Open Interest

1005 -99

Strike 1840 has a total call value of 0 versus a total put value of 245,745,054,960 Combined total value = 245,745,054,960

Strike 1860 has a total call value of 0 versus a total put value of 232,916,610,960 Combined total value = 232,916,610,960

Strike 1880 has a total call value of 0 versus a total put value of 220,088,166,960 Combined total value = 220,088,166,960

Strike 1900 has a total call value of 0 versus a total put value of 207,369,726,960 Combined total value = 207,369,726,960

Strike 1920 has a total call value of 0 versus a total put value of 194,651,286,960 Combined total value = 194,651,286,960

Strike 1938.95 has a total call value of 15,224,430 versus a total put value of 182,765,106,015 Combined total value = 182,780,330,445

Strike 1940 has a total call value of 16,100,445 versus a total put value of 182,109,262,785 Combined total value = 182,125,363,230

Strike 1960 has a total call value of 33,404,445 versus a total put value of 169,710,946,785 Combined total value = 169,744,351,230

Strike 1980 has a total call value of 50,708,445 versus a total put value of 157,388,644,785 Combined total value = 157,439,353,230

Strike 2000 has a total call value of 68,012,445 versus a total put value of 145,208,482,785 Combined total value = 145,276,495,230

Strike 2020 has a total call value of 124,250,445 versus a total put value of 134,115,382,785 Combined total value = 134,239,633,230

Strike 2040 has a total call value of 180,488,445 versus a total put value of 123,061,834,785 Combined total value = 123,242,323,230

Strike 2060 has a total call value of 237,962,445 versus a total put value of 112,364,872,785 Combined total value = 112,602,835,230

Strike 2080 has a total call value of 299,762,445 versus a total put value of 101,713,024,785 Combined total value = 102,012,787,230

Strike 2100 has a total call value of 361,562,445 versus a total put value of 91,137,808,785 Combined total value = 91,499,371,230

Strike 2120 has a total call value of 606,290,445 versus a total put value of 81,611,956,785 Combined total value = 82,218,247,230

Strike 2140 has a total call value of 867,086,445 versus a total put value of 72,234,424,785 Combined total value = 73,101,511,230

Strike 2160 has a total call value of 1,233,560,445 versus a total put value of 63,342,022,785 Combined total value = 64,575,583,230

Strike 2180 has a total call value of 1,875,044,445 versus a total put value of 54,908,794,785 Combined total value = 56,783,839,230

Strike 2200 has a total call value of 3,046,154,445 versus a total put value of 47,099,128,785 Combined total value = 50,145,283,230

Strike 2220 has a total call value of 6,758,480,445 versus a total put value of 41,730,562,785 Combined total value = 48,489,043,230

Strike 2240 has a total call value of 11,188,922,445 versus a total put value of 36,905,836,785 Combined total value = 48,094,759,230

Strike 2260 has a total call value of 16,600,748,445 versus a total put value of 32,702,200,785 Combined total value = 49,302,949,230

Strike 2280 has a total call value of 22,823,390,445 versus a total put value of 28,960,210,785 Combined total value = 51,783,601,230

Strike 2300 has a total call value of 29,684,426,445 versus a total put value of 25,631,662,785 Combined total value = 55,316,089,230

Strike 2320 has a total call value of 40,304,756,445 versus a total put value of 23,301,802,785 Combined total value = 63,606,559,230

Strike 2326.75 has a total call value of 44,007,171,270 versus a total put value of 22,550,932,785 Combined total value = 66,558,104,055

Strike 2340 has a total call value of 51,390,741,720 versus a total put value of 21,159,297,210 Combined total value = 72,550,038,930

Strike 2360 has a total call value of 62,789,133,720 versus a total put value of 19,105,065,210 Combined total value = 81,894,198,930

Strike 2380 has a total call value of 74,676,981,720 versus a total put value of 17,074,317,210 Combined total value = 91,751,298,930

Strike 2400 has a total call value of 86,803,377,720 versus a total put value of 15,043,569,210 Combined total value = 101,846,946,930

Strike 2404.3 has a total call value of 89,881,178,400 versus a total put value of 14,741,422,830 Combined total value = 104,622,601,230

Strike 2420 has a total call value of 101,118,729,720 versus a total put value of 13,638,722,340 Combined total value = 114,757,452,060

Strike 2440 has a total call value of 115,434,081,720 versus a total put value of 12,492,332,340 Combined total value = 127,926,414,060

Strike 2460 has a total call value of 129,754,377,720 versus a total put value of 11,472,632,340 Combined total value = 141,227,010,060

Strike 2480 has a total call value of 144,300,243,720 versus a total put value of 10,465,910,340 Combined total value = 154,766,154,060

Strike 2500 has a total call value of 158,846,109,720 versus a total put value of 9,459,806,340 Combined total value = 168,305,916,060

Strike 2520 has a total call value of 174,162,621,720 versus a total put value of 8,572,976,340 Combined total value = 182,735,598,060

Strike 2520.65 has a total call value of 174,661,312,185 versus a total put value of 8,546,042,355 Combined total value = 183,207,354,540

Strike 2540 has a total call value of 189,506,943,720 versus a total put value of 7,746,630,000 Combined total value = 197,253,573,720

Strike 2560 has a total call value of 204,929,133,720 versus a total put value of 6,920,364,000 Combined total value = 211,849,497,720

Strike 2580 has a total call value of 220,393,347,720 versus a total put value of 6,099,042,000 Combined total value = 226,492,389,720

Strike 2598.2 has a total call value of 234,465,782,460 versus a total put value of 5,351,638,980 Combined total value = 239,817,421,440

Strike 2600 has a total call value of 235,862,623,140 versus a total put value of 5,277,720,000 Combined total value = 241,140,343,140

Strike 2620 has a total call value of 251,898,487,140 versus a total put value of 4,592,358,000 Combined total value = 256,490,845,140

Strike 2640 has a total call value of 267,934,351,140 versus a total put value of 3,906,996,000 Combined total value = 271,841,347,140

Strike 2660 has a total call value of 284,025,835,140 versus a total put value of 3,221,634,000 Combined total value = 287,247,469,140

Strike 2680 has a total call value of 300,117,319,140 versus a total put value of 2,536,272,000 Combined total value = 302,653,591,140

Strike 2700 has a total call value of 316,396,057,140 versus a total put value of 2,113,560,000 Combined total value = 318,509,617,140

Strike 2720 has a total call value of 332,674,795,140 versus a total put value of 1,690,848,000 Combined total value = 334,365,643,140

Strike 2740 has a total call value of 348,953,533,140 versus a total put value of 1,268,136,000 Combined total value = 350,221,669,140

Strike 2760 has a total call value of 365,232,271,140 versus a total put value of 845,424,000 Combined total value = 366,077,695,140

Strike 2780 has a total call value of 381,511,009,140 versus a total put value of 422,712,000 Combined total value = 381,933,721,140

Strike 2800 has a total call value of 397,789,747,140 versus a total put value of 0 Combined total value = 397,789,747,140

Max-Pain Table for Stocks

Max-Pain Table Expiry

Commodity Max-Pain Table

Index Max-Pain Table

LTP > Max Pain Bearish

LTP < Max Pain Bullish

Frequently Asked Questions

Max Pain, also known as the max pain price, is the strike price at which the maximum number of option contracts (both puts and calls) would expire worthless, causing the largest financial losses for option holders at expiration. This price point represents the level where option writers would experience the least payout obligation.

The max pain theory suggests that as expiration approaches, market makers and option writers may attempt to influence the stock price toward this level to minimize their payout obligations, making it a significant reference point for traders analyzing option expiration dynamics.

Max Pain is calculated by determining the total dollar value of in-the-money options at each strike price. Here's the step-by-step process:

For each strike price: Calculate the difference between the current stock price and the strike price.
Multiply by Open Interest: Multiply this difference by the open interest (number of contracts) at that strike for both call and put options.
Sum the values: Add together the dollar value for put options and call options at each strike price.
Repeat for all strikes: Perform this calculation for every available strike price in the option chain.
Identify the maximum: The strike price with the highest combined dollar value is the Max Pain price.

This calculation helps identify the price level where option writers would face the maximum financial loss if the stock closes at that price on expiration day.

Traders can incorporate Max Pain analysis into their trading strategy in several ways:

Expiration Day Trading: As option expiration approaches, traders can use Max Pain as a potential support or resistance level, as market makers may attempt to push the price toward this level.
Option Selection: Understanding Max Pain helps traders choose strike prices that are less likely to be manipulated, potentially improving their option trade outcomes.
Risk Management: If a stock is trading far from Max Pain before expiration, traders can anticipate potential price movement toward this level and adjust their positions accordingly.
Market Sentiment Indicator: Comparing the current stock price to Max Pain can provide insights into market sentiment and potential price direction near expiration.
Hedging Strategy: Option writers can use Max Pain to identify strike prices where they might face the least payout risk, helping them structure more efficient hedging strategies.

Max Pain provides insights into potential stock price behavior, especially near option expiration:

Price Magnet Effect: If the stock price is significantly above or below Max Pain before expiration, there may be a tendency for the price to move toward Max Pain as expiration approaches, as option writers hedge their positions.
Support/Resistance Level: Max Pain can act as a psychological and technical support or resistance level, especially on expiration day, as it represents the price where maximum option value would be lost.
Volatility Indicator: A large gap between current price and Max Pain may indicate higher potential volatility or price movement as expiration nears.
Market Maker Activity: Significant open interest concentration around Max Pain suggests where market makers might have the most incentive to influence price movement through their hedging activities.

Note: Max Pain is a theoretical concept and should be used in conjunction with other technical and fundamental analysis tools, as it does not guarantee price movement.

Max Pain is a dynamic value that changes continuously based on several factors:

Open Interest Changes: As traders open and close option positions, the open interest at different strike prices changes, which directly affects the Max Pain calculation.
Stock Price Movement: As the underlying stock price moves, different strike prices become in-the-money or out-of-the-money, altering the dollar value calculations.
Time Decay: As expiration approaches, the time value of options decreases, but the intrinsic value calculations for Max Pain continue to evolve with price movements.
New Option Contracts: When new strike prices are added or when significant new positions are opened, Max Pain may shift to reflect the new distribution of open interest.

For accurate Max Pain analysis, traders should monitor it regularly, especially in the days leading up to expiration, as it can shift significantly as market conditions and option positions change.

Max Pain and Spot Price are two distinct concepts that serve different purposes in options trading:

Spot Price (Current Market Price): This is the current trading price of the underlying stock or index in the market. It represents the real-time value at which the asset can be bought or sold immediately.
Max Pain Price: This is a calculated theoretical price level based on option open interest data. It represents the strike price where option writers would face minimum payout obligations, not necessarily where the stock is currently trading.

The relationship between these two prices is crucial: when the spot price is far from Max Pain, traders may anticipate potential price movement toward Max Pain as expiration approaches. However, this is not guaranteed, and many other factors influence stock price movement.

No, Max Pain is not always accurate and should not be used as the sole indicator for predicting stock price movement. Here's why:

Market Forces: Strong fundamental news, earnings reports, or significant market events can override the Max Pain effect and drive prices in unexpected directions.
Institutional Activity: Large institutional trades, algorithmic trading, and other market participants may have different objectives than minimizing option payouts.
Limited Influence: While market makers may attempt to influence price toward Max Pain, their ability to do so is limited, especially in highly liquid stocks with strong directional momentum.
Multiple Expirations: Stocks often have options expiring on different dates (weekly, monthly), which means multiple Max Pain levels may exist simultaneously, reducing the predictive power of any single level.
Statistical Tool: Max Pain is best viewed as a statistical tool that provides context about option market dynamics rather than a guaranteed price target.

Traders should use Max Pain as one of many tools in their analysis, combining it with technical analysis, fundamental analysis, and market sentiment indicators for more comprehensive decision-making.

Max Pain becomes increasingly relevant as option expiration approaches:

Last Trading Week: Max Pain analysis is most useful during the final week before expiration, when option writers are actively hedging and the "pinning effect" (price movement toward Max Pain) is most likely to occur.
Expiration Day: On the day of expiration, Max Pain can serve as a key reference level, as market makers may attempt to keep the stock price near this level to minimize their payout obligations.
High Open Interest: Max Pain is more reliable when there is significant open interest concentrated around specific strike prices, as this indicates where option writers have the most exposure.
Low Volatility Periods: During periods of low market volatility, Max Pain may have a stronger influence, as there are fewer competing forces driving price movement.
Monthly Expirations: Monthly option expirations (typically the third Friday) often show stronger Max Pain effects compared to weekly expirations, due to higher open interest and more significant market maker involvement.

While Max Pain can be calculated at any time, its predictive value and practical application increase significantly as expiration approaches, making it particularly useful for short-term trading strategies focused on expiration week dynamics.

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