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.

CIPLA

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.

Cipla Ltd

1498.3 -9.70 (-0.64%)

L: 1496.1 H: 1508.9

Max Pain - CIPLA

16 Dec 2025 02:50 PM IST

Live

Expiry

Max Pain for CIPLA is 1520

Historical data for CIPLA-1520-CE

LTP (1520 CE)

10.4 -4.55

Open Interest

1514 239

Historical data for CIPLA-1520-PE

LTP (1520 PE)

28.55 6

Open Interest

691 12

Strike 1260 has a total call value of 0 versus a total put value of 77,591,250,000 Combined total value = 77,591,250,000

Strike 1270 has a total call value of 0 versus a total put value of 73,796,250,000 Combined total value = 73,796,250,000

Strike 1280 has a total call value of 0 versus a total put value of 70,001,250,000 Combined total value = 70,001,250,000

Strike 1290 has a total call value of 0 versus a total put value of 66,223,125,000 Combined total value = 66,223,125,000

Strike 1300 has a total call value of 0 versus a total put value of 62,445,000,000 Combined total value = 62,445,000,000

Strike 1310 has a total call value of 0 versus a total put value of 58,666,875,000 Combined total value = 58,666,875,000

Strike 1320 has a total call value of 0 versus a total put value of 54,888,750,000 Combined total value = 54,888,750,000

Strike 1330 has a total call value of 0 versus a total put value of 51,110,625,000 Combined total value = 51,110,625,000

Strike 1340 has a total call value of 0 versus a total put value of 47,332,500,000 Combined total value = 47,332,500,000

Strike 1350 has a total call value of 0 versus a total put value of 43,570,875,000 Combined total value = 43,570,875,000

Strike 1360 has a total call value of 0 versus a total put value of 39,809,250,000 Combined total value = 39,809,250,000

Strike 1370 has a total call value of 0 versus a total put value of 36,103,500,000 Combined total value = 36,103,500,000

Strike 1380 has a total call value of 0 versus a total put value of 32,397,750,000 Combined total value = 32,397,750,000

Strike 1390 has a total call value of 0 versus a total put value of 29,039,625,000 Combined total value = 29,039,625,000

Strike 1400 has a total call value of 0 versus a total put value of 25,692,000,000 Combined total value = 25,692,000,000

Strike 1410 has a total call value of 7,875,000 versus a total put value of 22,853,625,000 Combined total value = 22,861,500,000

Strike 1420 has a total call value of 15,750,000 versus a total put value of 20,392,500,000 Combined total value = 20,408,250,000

Strike 1430 has a total call value of 27,000,000 versus a total put value of 18,011,625,000 Combined total value = 18,038,625,000

Strike 1440 has a total call value of 39,000,000 versus a total put value of 15,831,000,000 Combined total value = 15,870,000,000

Strike 1450 has a total call value of 51,375,000 versus a total put value of 13,725,000,000 Combined total value = 13,776,375,000

Strike 1460 has a total call value of 78,375,000 versus a total put value of 11,696,625,000 Combined total value = 11,775,000,000

Strike 1470 has a total call value of 109,500,000 versus a total put value of 9,848,250,000 Combined total value = 9,957,750,000

Strike 1480 has a total call value of 147,375,000 versus a total put value of 8,179,125,000 Combined total value = 8,326,500,000

Strike 1490 has a total call value of 241,875,000 versus a total put value of 6,648,375,000 Combined total value = 6,890,250,000

Strike 1500 has a total call value of 388,500,000 versus a total put value of 5,218,875,000 Combined total value = 5,607,375,000

Strike 1510 has a total call value of 859,500,000 versus a total put value of 4,107,750,000 Combined total value = 4,967,250,000

Strike 1520 has a total call value of 1,504,875,000 versus a total put value of 3,128,625,000 Combined total value = 4,633,500,000

Strike 1530 has a total call value of 2,718,000,000 versus a total put value of 2,408,625,000 Combined total value = 5,126,625,000

Strike 1540 has a total call value of 4,412,625,000 versus a total put value of 1,882,125,000 Combined total value = 6,294,750,000

Strike 1550 has a total call value of 6,590,250,000 versus a total put value of 1,453,500,000 Combined total value = 8,043,750,000

Strike 1560 has a total call value of 9,007,500,000 versus a total put value of 1,255,125,000 Combined total value = 10,262,625,000

Strike 1570 has a total call value of 11,778,375,000 versus a total put value of 1,101,375,000 Combined total value = 12,879,750,000

Strike 1580 has a total call value of 14,861,625,000 versus a total put value of 953,250,000 Combined total value = 15,814,875,000

Strike 1590 has a total call value of 18,024,000,000 versus a total put value of 816,750,000 Combined total value = 18,840,750,000

Strike 1600 has a total call value of 21,240,750,000 versus a total put value of 685,500,000 Combined total value = 21,926,250,000

Strike 1610 has a total call value of 25,339,500,000 versus a total put value of 636,000,000 Combined total value = 25,975,500,000

Strike 1620 has a total call value of 29,546,625,000 versus a total put value of 586,500,000 Combined total value = 30,133,125,000

Strike 1630 has a total call value of 33,851,625,000 versus a total put value of 538,875,000 Combined total value = 34,390,500,000

Strike 1640 has a total call value of 38,215,500,000 versus a total put value of 491,625,000 Combined total value = 38,707,125,000

Strike 1650 has a total call value of 42,620,250,000 versus a total put value of 455,625,000 Combined total value = 43,075,875,000

Strike 1660 has a total call value of 47,178,750,000 versus a total put value of 423,750,000 Combined total value = 47,602,500,000

Strike 1670 has a total call value of 52,634,625,000 versus a total put value of 392,250,000 Combined total value = 53,026,875,000

Strike 1680 has a total call value of 58,147,125,000 versus a total put value of 360,750,000 Combined total value = 58,507,875,000

Strike 1690 has a total call value of 63,699,750,000 versus a total put value of 330,375,000 Combined total value = 64,030,125,000

Strike 1700 has a total call value of 69,269,625,000 versus a total put value of 300,000,000 Combined total value = 69,569,625,000

Strike 1710 has a total call value of 74,953,500,000 versus a total put value of 270,000,000 Combined total value = 75,223,500,000

Strike 1720 has a total call value of 80,637,375,000 versus a total put value of 240,000,000 Combined total value = 80,877,375,000

Strike 1730 has a total call value of 86,342,250,000 versus a total put value of 210,000,000 Combined total value = 86,552,250,000

Strike 1740 has a total call value of 92,047,125,000 versus a total put value of 180,000,000 Combined total value = 92,227,125,000

Strike 1750 has a total call value of 97,760,625,000 versus a total put value of 150,000,000 Combined total value = 97,910,625,000

Strike 1760 has a total call value of 103,474,125,000 versus a total put value of 120,000,000 Combined total value = 103,594,125,000

Strike 1770 has a total call value of 109,202,625,000 versus a total put value of 90,000,000 Combined total value = 109,292,625,000

Strike 1780 has a total call value of 114,931,125,000 versus a total put value of 60,000,000 Combined total value = 114,991,125,000

Strike 1790 has a total call value of 120,667,500,000 versus a total put value of 30,000,000 Combined total value = 120,697,500,000

Strike 1800 has a total call value of 126,403,875,000 versus a total put value of 0 Combined total value = 126,403,875,000

Strike 1810 has a total call value of 132,186,750,000 versus a total put value of 0 Combined total value = 132,186,750,000

Strike 1820 has a total call value of 137,969,625,000 versus a total put value of 0 Combined total value = 137,969,625,000

Strike 1830 has a total call value of 143,760,375,000 versus a total put value of 0 Combined total value = 143,760,375,000

Strike 1840 has a total call value of 149,551,125,000 versus a total put value of 0 Combined total value = 149,551,125,000

Strike 1850 has a total call value of 155,351,625,000 versus a total put value of 0 Combined total value = 155,351,625,000

Strike 1860 has a total call value of 161,152,125,000 versus a total put value of 0 Combined total value = 161,152,125,000

Strike 1870 has a total call value of 166,952,625,000 versus a total put value of 0 Combined total value = 166,952,625,000

Strike 1880 has a total call value of 172,753,125,000 versus a total put value of 0 Combined total value = 172,753,125,000

Strike 1890 has a total call value of 178,553,625,000 versus a total put value of 0 Combined total value = 178,553,625,000

Strike 1900 has a total call value of 184,354,125,000 versus a total put value of 0 Combined total value = 184,354,125,000

Strike 1910 has a total call value of 190,154,625,000 versus a total put value of 0 Combined total value = 190,154,625,000

Strike 1920 has a total call value of 195,955,125,000 versus a total put value of 0 Combined total value = 195,955,125,000

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	1128.5	1140
ABB	5243.5	5200
ABCAPITAL	348.3	350
ADANIENSOL	995.75	990
ADANIENT	2247.9	2300
ADANIGREEN	1027.4	1020
ADANIPORTS	1502.2	1500
ALKEM	5656	5700
AMBER	6779	6800
AMBUJACEM	549.25	550
ANGELONE	2531.7	2600
APLAPOLLO	1730.6	1740
APOLLOHOSP	7046.5	7200
ASHOKLEY	167.7	160
ASIANPAINT	2791	2800
ASTRAL	1462.7	1460
AUBANK	981.6	960
AUROPHARMA	1179.6	1200
AXISBANK	1222.8	1240
BAJAJ-AUTO	9021	9000
BAJAJFINSV	2039.8	2060
BAJFINANCE	999.5	1020
BANDHANBNK	149.4	150
BANKBARODA	282.4	290
BANKINDIA	139.78	143
BDL	1355.2	1400
BEL	388.15	400
BHARATFORG	1419	1400
BHARTIARTL	2101.9	2100
BHEL	278.55	280
BIOCON	384.75	390
BLUESTARCO	1815.3	1780
BOSCHLTD	36220	36500
BPCL	366.9	362.5
BRITANNIA	6070.5	6000
BSE	2600.1	2700
CAMS	754.5	780
CANBK	147.31	148
CDSL	1502.7	1560
CGPOWER	672.9	680
CHOLAFIN	1716.5	1700
CIPLA	1498.3	1520
COALINDIA	381.5	384.75
COFORGE	1854.8	1840
COLPAL	2162.1	2180
CONCOR	500.3	520
CROMPTON	253.15	265
CUMMINSIND	4490	4500
CYIENT	1150.9	1160
DABUR	497.8	505
DALBHARAT	2060.4	2040
DELHIVERY	402.05	410
DIVISLAB	6302.5	6400
DIXON	13661	13750
DLF	691.45	720
DMART	3842	3900
DRREDDY	1280.6	1270
EICHERMOT	7086.5	7100
ETERNAL	285.3	295
EXIDEIND	366.25	375
FEDERALBNK	262.55	260
FORTIS	877	890
GAIL	168.17	175
GLENMARK	1965.7	1940
GMRAIRPORT	103.17	102
GODREJCP	1184	1160
GODREJPROP	2025.1	2080
GRASIM	2802.8	2800
HAL	4258	4500
HAVELLS	1415.1	1440
HCLTECH	1650.9	1660
HDFCAMC	2581.3	2625
HDFCBANK	995.9	1000
HDFCLIFE	765.6	770
HEROMOTOCO	5948	6050
HFCL	65.71	68
HINDALCO	837.2	820
HINDPETRO	464	460
HINDUNILVR	2284.7	2300
HINDZINC	567.8	540
HUDCO	211.25	220
ICICIBANK	1366.1	1380
ICICIGI	1946.7	1980
ICICIPRULI	640.95	630
IDEA	11.28	11
IDFCFIRSTB	83.49	81
IEX	140.54	145
IIFL	567.45	560
INDHOTEL	724.35	740
INDIANB	773.8	820
INDIGO	4979	5000
INDUSINDBK	844.4	850
INDUSTOWER	407.7	410
INFY	1592.1	1600
INOXWIND	126.1	130
IOC	167.56	165
IRCTC	670.55	690
IREDA	133.89	140
IRFC	112.25	116
ITC	401.95	405
JINDALSTEL	1012.8	1030
JIOFIN	295.75	305
JSWENERGY	477.15	490
JSWSTEEL	1085.3	1130
JUBLFOOD	561.2	580
KALYANKJIL	478.3	480
KAYNES	4177.5	4400
KEI	4154.6	4100
KFINTECH	1033.8	1060
KOTAKBANK	2183.2	2160
KPITTECH	1170.8	1200
LAURUSLABS	998.7	1000
LICHSGFIN	526.5	550
LICI	854.15	880
LODHA	1075.3	1120
LT	4064.3	4040
LTF	300.45	302.5
LTIM	6212	6150
LUPIN	2088	2080
M&M	3629.7	3650
MANAPPURAM	283.7	280
MANKIND	2109	2200
MARICO	738.9	740
MARUTI	16390	16300
MAXHEALTH	1074.1	1100
MAZDOCK	2410	2600
MCX	10156	10100
MFSL	1673	1700
MOTHERSON	119.8	116
MPHASIS	2856.8	2900
MUTHOOTFIN	3838.5	3750
NATIONALUM	276.3	270
NAUKRI	1345.8	1360
NBCC	111.83	113
NCC	158.25	167.5
NESTLEIND	1244	1240
NHPC	75.92	78
NMDC	77.07	77
NTPC	321.15	325
NUVAMA	7211	7200
NYKAA	246.8	255
OBEROIRLTY	1632.9	1660
OFSS	7856	8000
OIL	401.95	410
ONGC	232.44	240
PAGEIND	36340	37500
PATANJALI	535.35	545
PAYTM	1282.2	1300
PERSISTENT	6195	6200
PETRONET	264.75	277.5
PFC	335.35	355
PGEL	570	560
PHOENIXLTD	1779.4	1740
PIDILITIND	1471.9	1480
PIIND	3249	3350
PNB	116.99	120
PNBHOUSING	912.05	910
POLICYBZR	1818.6	1860
POLYCAB	7343.5	7300
POWERGRID	261.35	270
POWERINDIA	19285	19500
PPLPHARMA	169	180
PRESTIGE	1630.2	1660
RBLBANK	299.55	310
RECLTD	335.55	355
RELIANCE	1545.5	1540
RVNL	309.75	315
SAIL	128.78	132
SAMMAANCAP	146.64	155
SBICARD	849.95	870
SBILIFE	2043.1	2020
SBIN	964.3	970
SHREECEM	25970	26500
SHRIRAMFIN	852.6	850
SIEMENS	3153.4	3200
SOLARINDS	11930	12500
SONACOMS	485.15	500
SRF	3015	2950
SUNPHARMA	1784.6	1800
SUPREMEIND	3411	3400
SUZLON	52.39	54
SYNGENE	647.55	650
TATACONSUM	1170.2	1170
TATAELXSI	4999	5100
TATAMOTORS	0	320
TATAPOWER	379.55	390
TATASTEEL	169.97	170
TATATECH	650.55	680
TCS	3207.8	3200
TECHM	1576.7	1540
TIINDIA	2622.8	2700
TITAGARH	791.15	800
TITAN	3920.8	3860
TMPV	345.75	360
TORNTPHARM	3771.2	3800
TORNTPOWER	1282	1300
TRENT	4103.3	4200
TVSMOTOR	3616.5	3600
ULTRACEMCO	11549	11700
UNIONBANK	152.87	152.5
UNITDSPR	1448.4	1440
UNOMINDA	1258.5	1280
UPL	749.9	750
VBL	477.75	470
VEDL	564.9	540
VOLTAS	1396.9	1380
WIPRO	259.2	255
YESBANK	21.46	22
ZYDUSLIFE	917.45	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 CIPLA

CIPLA

360ONE

ABB

ABCAPITAL

ADANIENSOL

ADANIENT

ADANIGREEN

ADANIPORTS

ALKEM

AMBER

AMBUJACEM

ANGELONE

APLAPOLLO

APOLLOHOSP

ASHOKLEY

ASIANPAINT

ASTRAL

AUBANK

AUROPHARMA

AXISBANK

BAJAJ-AUTO

BAJAJFINSV

BAJFINANCE

BANDHANBNK

BANKBARODA

BANKEX

BANKINDIA

BANKNIFTY

BDL

BEL

BHARATFORG

BHARTIARTL

BHEL

BIOCON

BLUESTARCO

BOSCHLTD

BPCL

BRITANNIA

BSE

CAMS

CANBK

CDSL

CGPOWER

CHOLAFIN

CIPLA

COALINDIA

COFORGE

COLPAL

CONCOR

COPPER

CROMPTON

CRUDEOIL

CRUDEOILM

CUMMINSIND

CYIENT

DABUR

DALBHARAT

DELHIVERY

DIVISLAB

DIXON

DLF

DMART

DRREDDY

EICHERMOT

ETERNAL

EURINR

EURUSD

EXIDEIND

FEDERALBNK

FINNIFTY

FORTIS

GAIL

GBPINR

GBPUSD

GLENMARK

GMRAIRPORT

GODREJCP

GODREJPROP

GOLD