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.

CANBK

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.

Canara Bank

147.05 -1.24 (-0.84%)

L: 146.49 H: 148.9

Max Pain - CANBK

16 Dec 2025 03:30 PM IST Market Closed

Expiry

Max Pain for CANBK is 148

Historical data for CANBK-148-CE

LTP (148 CE)

2.42 -0.57

Open Interest

969 365

Historical data for CANBK-148-PE

LTP (148 PE)

3.04 0.33

Open Interest

468 28

Strike 112 has a total call value of 0 versus a total put value of 251,102,700,000 Combined total value = 251,102,700,000

Strike 113 has a total call value of 12,825,000 versus a total put value of 243,023,625,000 Combined total value = 243,036,450,000

Strike 114 has a total call value of 25,650,000 versus a total put value of 234,944,550,000 Combined total value = 234,970,200,000

Strike 115 has a total call value of 39,825,000 versus a total put value of 226,865,475,000 Combined total value = 226,905,300,000

Strike 116 has a total call value of 54,000,000 versus a total put value of 218,786,400,000 Combined total value = 218,840,400,000

Strike 117 has a total call value of 68,175,000 versus a total put value of 210,707,325,000 Combined total value = 210,775,500,000

Strike 118 has a total call value of 82,350,000 versus a total put value of 202,628,250,000 Combined total value = 202,710,600,000

Strike 119 has a total call value of 96,525,000 versus a total put value of 194,579,550,000 Combined total value = 194,676,075,000

Strike 120 has a total call value of 110,700,000 versus a total put value of 186,530,850,000 Combined total value = 186,641,550,000

Strike 121 has a total call value of 185,625,000 versus a total put value of 178,563,150,000 Combined total value = 178,748,775,000

Strike 122 has a total call value of 260,550,000 versus a total put value of 170,596,125,000 Combined total value = 170,856,675,000

Strike 123 has a total call value of 336,150,000 versus a total put value of 162,633,150,000 Combined total value = 162,969,300,000

Strike 124 has a total call value of 411,750,000 versus a total put value of 154,682,325,000 Combined total value = 155,094,075,000

Strike 125 has a total call value of 491,400,000 versus a total put value of 146,740,275,000 Combined total value = 147,231,675,000

Strike 126 has a total call value of 575,100,000 versus a total put value of 139,008,150,000 Combined total value = 139,583,250,000

Strike 127 has a total call value of 662,850,000 versus a total put value of 131,310,450,000 Combined total value = 131,973,300,000

Strike 128 has a total call value of 750,600,000 versus a total put value of 123,666,075,000 Combined total value = 124,416,675,000

Strike 129 has a total call value of 840,375,000 versus a total put value of 116,044,650,000 Combined total value = 116,885,025,000

Strike 130 has a total call value of 930,825,000 versus a total put value of 108,449,550,000 Combined total value = 109,380,375,000

Strike 131 has a total call value of 1,212,300,000 versus a total put value of 101,445,075,000 Combined total value = 102,657,375,000

Strike 132 has a total call value of 1,494,450,000 versus a total put value of 94,455,450,000 Combined total value = 95,949,900,000

Strike 133 has a total call value of 1,782,000,000 versus a total put value of 87,533,325,000 Combined total value = 89,315,325,000

Strike 134 has a total call value of 2,070,900,000 versus a total put value of 80,682,750,000 Combined total value = 82,753,650,000

Strike 135 has a total call value of 2,363,175,000 versus a total put value of 73,896,300,000 Combined total value = 76,259,475,000

Strike 136 has a total call value of 2,677,725,000 versus a total put value of 67,618,125,000 Combined total value = 70,295,850,000

Strike 137 has a total call value of 3,002,400,000 versus a total put value of 61,508,025,000 Combined total value = 64,510,425,000

Strike 138 has a total call value of 3,336,525,000 versus a total put value of 55,556,550,000 Combined total value = 58,893,075,000

Strike 139 has a total call value of 3,678,075,000 versus a total put value of 49,704,300,000 Combined total value = 53,382,375,000

Strike 140 has a total call value of 4,023,675,000 versus a total put value of 44,011,350,000 Combined total value = 48,035,025,000

Strike 141 has a total call value of 4,709,475,000 versus a total put value of 39,276,225,000 Combined total value = 43,985,700,000

Strike 142 has a total call value of 5,400,000,000 versus a total put value of 34,794,225,000 Combined total value = 40,194,225,000

Strike 143 has a total call value of 6,143,175,000 versus a total put value of 30,497,175,000 Combined total value = 36,640,350,000

Strike 144 has a total call value of 6,943,725,000 versus a total put value of 26,379,000,000 Combined total value = 33,322,725,000

Strike 145 has a total call value of 7,840,800,000 versus a total put value of 22,469,400,000 Combined total value = 30,310,200,000

Strike 146 has a total call value of 9,219,825,000 versus a total put value of 19,502,100,000 Combined total value = 28,721,925,000

Strike 147 has a total call value of 10,738,575,000 versus a total put value of 16,715,700,000 Combined total value = 27,454,275,000

Strike 148 has a total call value of 12,557,700,000 versus a total put value of 14,172,300,000 Combined total value = 26,730,000,000

Strike 149 has a total call value of 15,030,900,000 versus a total put value of 11,944,800,000 Combined total value = 26,975,700,000

Strike 150 has a total call value of 17,799,750,000 versus a total put value of 9,853,650,000 Combined total value = 27,653,400,000

Strike 151 has a total call value of 22,275,675,000 versus a total put value of 8,340,300,000 Combined total value = 30,615,975,000

Strike 152 has a total call value of 27,027,675,000 versus a total put value of 6,988,275,000 Combined total value = 34,015,950,000

Strike 153 has a total call value of 32,253,525,000 versus a total put value of 5,826,600,000 Combined total value = 38,080,125,000

Strike 154 has a total call value of 37,921,500,000 versus a total put value of 4,731,750,000 Combined total value = 42,653,250,000

Strike 155 has a total call value of 44,139,600,000 versus a total put value of 3,854,250,000 Combined total value = 47,993,850,000

Strike 156 has a total call value of 51,707,700,000 versus a total put value of 3,183,975,000 Combined total value = 54,891,675,000

Strike 157 has a total call value of 59,441,175,000 versus a total put value of 2,554,200,000 Combined total value = 61,995,375,000

Strike 158 has a total call value of 67,393,350,000 versus a total put value of 1,946,025,000 Combined total value = 69,339,375,000

Strike 159 has a total call value of 75,581,100,000 versus a total put value of 1,341,225,000 Combined total value = 76,922,325,000

Strike 160 has a total call value of 83,904,525,000 versus a total put value of 736,425,000 Combined total value = 84,640,950,000

Strike 161 has a total call value of 93,750,750,000 versus a total put value of 519,750,000 Combined total value = 94,270,500,000

Strike 162 has a total call value of 103,708,350,000 versus a total put value of 342,225,000 Combined total value = 104,050,575,000

Strike 163 has a total call value of 113,896,800,000 versus a total put value of 243,000,000 Combined total value = 114,139,800,000

Strike 164 has a total call value of 124,151,400,000 versus a total put value of 145,800,000 Combined total value = 124,297,200,000

Strike 165 has a total call value of 134,584,200,000 versus a total put value of 89,775,000 Combined total value = 134,673,975,000

Strike 166 has a total call value of 145,017,000,000 versus a total put value of 33,750,000 Combined total value = 145,050,750,000

Strike 167 has a total call value of 155,699,550,000 versus a total put value of 16,875,000 Combined total value = 155,716,425,000

Strike 168 has a total call value of 166,382,100,000 versus a total put value of 0 Combined total value = 166,382,100,000

Max-Pain Table for Stocks

Max-Pain Table Expiry

Note:- click on symbol to see more detailed view

Max Pain Table (Stocks)
Symbol	Symbol Ltp	Max Pain
360ONE	1128	1140
ABB	5242	5200
ABCAPITAL	347	350
ADANIENSOL	994.3	990
ADANIENT	2247.9	2300
ADANIGREEN	1023.9	1020
ADANIPORTS	1499	1500
ALKEM	5675	5700
AMBER	6776.5	6800
AMBUJACEM	548.7	555
ANGELONE	2532.4	2600
APLAPOLLO	1740	1740
APOLLOHOSP	7051.5	7200
ASHOKLEY	167.75	160
ASIANPAINT	2790.9	2800
ASTRAL	1460	1460
AUBANK	980.6	960
AUROPHARMA	1178.1	1200
AXISBANK	1219.6	1240
BAJAJ-AUTO	9008	9000
BAJAJFINSV	2034.9	2060
BAJFINANCE	998.4	1020
BANDHANBNK	149.35	150
BANKBARODA	282.85	290
BANKINDIA	139.38	143
BDL	1355.6	1400
BEL	388	400
BHARATFORG	1417.4	1400
BHARTIARTL	2102	2100
BHEL	279.35	280
BIOCON	384.05	390
BLUESTARCO	1815.6	1780
BOSCHLTD	36230	36500
BPCL	368.15	362.5
BRITANNIA	6066	6000
BSE	2605.9	2700
CAMS	753.8	780
CANBK	147.05	148
CDSL	1501.2	1560
CGPOWER	673.05	680
CHOLAFIN	1715.4	1700
CIPLA	1499.6	1520
COALINDIA	381.6	382.5
COFORGE	1862	1840
COLPAL	2158	2180
CONCOR	499.6	520
CROMPTON	252.55	265
CUMMINSIND	4494.3	4500
CYIENT	1143	1160
DABUR	497.2	505
DALBHARAT	2066.5	2040
DELHIVERY	401.95	410
DIVISLAB	6335.5	6400
DIXON	13571	13750
DLF	690.95	720
DMART	3861	3900
DRREDDY	1276.9	1270
EICHERMOT	7061.5	7100
ETERNAL	284.45	295
EXIDEIND	366.25	375
FEDERALBNK	261.95	260
FORTIS	871.55	890
GAIL	168.1	175
GLENMARK	1962	1940
GMRAIRPORT	103.21	102
GODREJCP	1180	1160
GODREJPROP	2020	2080
GRASIM	2799.1	2800
HAL	4261.4	4500
HAVELLS	1412.7	1440
HCLTECH	1651.7	1660
HDFCAMC	2579	2620
HDFCBANK	994.3	1000
HDFCLIFE	763.4	770
HEROMOTOCO	5946.5	6050
HFCL	65.18	68
HINDALCO	837.15	820
HINDPETRO	465.35	460
HINDUNILVR	2279.9	2300
HINDZINC	567.7	540
HUDCO	211.02	220
ICICIBANK	1366	1380
ICICIGI	1951.2	1980
ICICIPRULI	635.15	630
IDEA	11.25	11
IDFCFIRSTB	83.24	81
IEX	140.4	145
IIFL	566.7	560
INDHOTEL	725.25	740
INDIANB	770.25	820
INDIGO	4974	5000
INDUSINDBK	845	850
INDUSTOWER	408.15	410
INFY	1592.9	1600
INOXWIND	126.6	130
IOC	167.74	166
IRCTC	671.05	690
IREDA	133.35	140
IRFC	112.01	116
ITC	402	405
JINDALSTEL	1011.2	1030
JIOFIN	295.25	305
JSWENERGY	477.8	490
JSWSTEEL	1082.6	1130
JUBLFOOD	560	580
KALYANKJIL	479.1	480
KAYNES	4186.5	4400
KEI	4156.3	4100
KFINTECH	1034.5	1060
KOTAKBANK	2182.4	2160
KPITTECH	1176.3	1200
LAURUSLABS	1001.3	1000
LICHSGFIN	525.8	550
LICI	854.5	880
LODHA	1075.4	1120
LT	4063.8	4040
LTF	300.8	302.5
LTIM	6216	6150
LUPIN	2090.6	2080
M&M	3621	3650
MANAPPURAM	283.5	280
MANKIND	2106	2200
MARICO	738.8	740
MARUTI	16354	16200
MAXHEALTH	1073	1100
MAZDOCK	2408	2550
MCX	10164	10100
MFSL	1669.6	1700
MOTHERSON	119.57	116
MPHASIS	2863.1	2900
MUTHOOTFIN	3847	3750
NATIONALUM	276.85	270
NAUKRI	1346.9	1360
NBCC	111.68	112
NCC	157.85	167.5
NESTLEIND	1240.6	1240
NHPC	76.01	78
NMDC	77.15	77
NTPC	321	325
NUVAMA	7190	7200
NYKAA	247.3	255
OBEROIRLTY	1626.8	1640
OFSS	7828.5	8000
OIL	401.7	410
ONGC	232.21	240
PAGEIND	36355	37500
PATANJALI	537.85	545
PAYTM	1281.4	1300
PERSISTENT	6263	6200
PETRONET	264.7	277.5
PFC	336.15	355
PGEL	570.95	560
PHOENIXLTD	1781	1740
PIDILITIND	1473.1	1480
PIIND	3259.3	3350
PNB	117.03	120
PNBHOUSING	913.4	910
POLICYBZR	1820.5	1860
POLYCAB	7361.5	7300
POWERGRID	260.35	270
POWERINDIA	19320	19500
PPLPHARMA	168.6	180
PRESTIGE	1627.9	1660
RBLBANK	300.7	310
RECLTD	335.4	350
RELIANCE	1542.3	1540
RVNL	309.4	315
SAIL	129.68	133
SAMMAANCAP	146.89	155
SBICARD	847.7	870
SBILIFE	2036	2020
SBIN	961.15	965
SHREECEM	25990	26500
SHRIRAMFIN	848.4	850
SIEMENS	3161.4	3200
SOLARINDS	11869	12500
SONACOMS	484.95	500
SRF	3015.7	2950
SUNPHARMA	1781.3	1800
SUPREMEIND	3405.8	3400
SUZLON	52.67	54
SYNGENE	646.35	650
TATACONSUM	1169.9	1170
TATAELXSI	4998	5100
TATAMOTORS	0	320
TATAPOWER	379.85	390
TATASTEEL	169.83	170
TATATECH	650.35	680
TCS	3205.1	3200
TECHM	1578.2	1540
TIINDIA	2622.4	2700
TITAGARH	789.8	800
TITAN	3929.5	3860
TMPV	345.45	360
TORNTPHARM	3765.1	3800
TORNTPOWER	1281.2	1300
TRENT	4108.7	4200
TVSMOTOR	3619.6	3600
ULTRACEMCO	11528	11700
UNIONBANK	153.2	152.5
UNITDSPR	1451.4	1440
UNOMINDA	1257	1280
UPL	749.9	750
VBL	477.15	470
VEDL	569.5	545
VOLTAS	1394.3	1380
WIPRO	259.22	255
YESBANK	21.47	22
ZYDUSLIFE	914.35	930

Note:

Stock LTP > Max Pain	Bearish Trend
Stock LTP < Max Pain	Bullish Trend

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.

Related Pages for CANBK

CANBK

360ONE

ABB

ABCAPITAL

ADANIENSOL

ADANIENT

ADANIGREEN

ADANIPORTS

ALKEM

AMBER

AMBUJACEM

ANGELONE

APLAPOLLO

APOLLOHOSP

ASHOKLEY

ASIANPAINT

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