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.

COALINDIA

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.

Coal India Ltd

384.3 +0.95 (0.25%)

L: 380.1 H: 384.5

Max Pain - COALINDIA

15 Dec 2025 12:17 PM IST

Live

Expiry

Max Pain for COALINDIA is 382.25

Historical data for COALINDIA-382.25-CE

LTP (382.25 CE)

6.1 0.95

Open Interest

179 8

Historical data for COALINDIA-382.25-PE

LTP (382.25 PE)

2.5 -0.8

Open Interest

140 -16

Strike 310 has a total call value of 0 versus a total put value of 102,660,345,000 Combined total value = 102,660,345,000

Strike 312.5 has a total call value of 0 versus a total put value of 98,966,407,500 Combined total value = 98,966,407,500

Strike 314.75 has a total call value of 0 versus a total put value of 95,641,863,750 Combined total value = 95,641,863,750

Strike 315 has a total call value of 0 versus a total put value of 95,272,470,000 Combined total value = 95,272,470,000

Strike 317.5 has a total call value of 0 versus a total put value of 91,578,532,500 Combined total value = 91,578,532,500

Strike 319.75 has a total call value of 0 versus a total put value of 88,253,988,750 Combined total value = 88,253,988,750

Strike 320 has a total call value of 0 versus a total put value of 87,884,595,000 Combined total value = 87,884,595,000

Strike 322.5 has a total call value of 0 versus a total put value of 84,190,657,500 Combined total value = 84,190,657,500

Strike 324.75 has a total call value of 0 versus a total put value of 80,866,113,750 Combined total value = 80,866,113,750

Strike 325 has a total call value of 0 versus a total put value of 80,496,720,000 Combined total value = 80,496,720,000

Strike 327.5 has a total call value of 0 versus a total put value of 76,802,782,500 Combined total value = 76,802,782,500

Strike 329.75 has a total call value of 0 versus a total put value of 73,478,238,750 Combined total value = 73,478,238,750

Strike 330 has a total call value of 0 versus a total put value of 73,108,845,000 Combined total value = 73,108,845,000

Strike 332.5 has a total call value of 0 versus a total put value of 69,414,907,500 Combined total value = 69,414,907,500

Strike 334.75 has a total call value of 0 versus a total put value of 66,090,363,750 Combined total value = 66,090,363,750

Strike 335 has a total call value of 0 versus a total put value of 65,720,970,000 Combined total value = 65,720,970,000

Strike 337.5 has a total call value of 0 versus a total put value of 62,027,032,500 Combined total value = 62,027,032,500

Strike 339.75 has a total call value of 0 versus a total put value of 58,702,488,750 Combined total value = 58,702,488,750

Strike 340 has a total call value of 0 versus a total put value of 58,333,803,750 Combined total value = 58,333,803,750

Strike 342.25 has a total call value of 0 versus a total put value of 55,085,501,250 Combined total value = 55,085,501,250

Strike 342.5 has a total call value of 0 versus a total put value of 54,724,578,750 Combined total value = 54,724,578,750

Strike 344.75 has a total call value of 0 versus a total put value of 51,476,276,250 Combined total value = 51,476,276,250

Strike 345 has a total call value of 0 versus a total put value of 51,115,353,750 Combined total value = 51,115,353,750

Strike 347.25 has a total call value of 0 versus a total put value of 48,013,458,750 Combined total value = 48,013,458,750

Strike 347.5 has a total call value of 0 versus a total put value of 47,668,803,750 Combined total value = 47,668,803,750

Strike 349.75 has a total call value of 0 versus a total put value of 44,566,908,750 Combined total value = 44,566,908,750

Strike 350 has a total call value of 0 versus a total put value of 44,224,143,750 Combined total value = 44,224,143,750

Strike 352.25 has a total call value of 10,327,500 versus a total put value of 41,277,465,000 Combined total value = 41,287,792,500

Strike 352.5 has a total call value of 11,475,000 versus a total put value of 40,950,056,250 Combined total value = 40,961,531,250

Strike 354.75 has a total call value of 21,802,500 versus a total put value of 38,003,377,500 Combined total value = 38,025,180,000

Strike 355 has a total call value of 22,950,000 versus a total put value of 37,675,968,750 Combined total value = 37,698,918,750

Strike 357.25 has a total call value of 33,277,500 versus a total put value of 34,764,221,250 Combined total value = 34,797,498,750

Strike 357.5 has a total call value of 34,425,000 versus a total put value of 34,440,693,750 Combined total value = 34,475,118,750

Strike 359.75 has a total call value of 44,752,500 versus a total put value of 31,528,946,250 Combined total value = 31,573,698,750

Strike 360 has a total call value of 45,900,000 versus a total put value of 31,208,456,250 Combined total value = 31,254,356,250

Strike 362.25 has a total call value of 79,616,250 versus a total put value of 28,570,387,500 Combined total value = 28,650,003,750

Strike 362.5 has a total call value of 83,362,500 versus a total put value of 28,277,268,750 Combined total value = 28,360,631,250

Strike 364.75 has a total call value of 117,078,750 versus a total put value of 25,677,472,500 Combined total value = 25,794,551,250

Strike 365 has a total call value of 120,825,000 versus a total put value of 25,388,606,250 Combined total value = 25,509,431,250

Strike 367.25 has a total call value of 154,541,250 versus a total put value of 22,891,781,250 Combined total value = 23,046,322,500

Strike 367.5 has a total call value of 158,287,500 versus a total put value of 22,618,541,250 Combined total value = 22,776,828,750

Strike 369.75 has a total call value of 192,003,750 versus a total put value of 20,216,182,500 Combined total value = 20,408,186,250

Strike 370 has a total call value of 195,750,000 versus a total put value of 19,955,497,500 Combined total value = 20,151,247,500

Strike 372.25 has a total call value of 337,905,000 versus a total put value of 17,896,680,000 Combined total value = 18,234,585,000

Strike 372.5 has a total call value of 353,700,000 versus a total put value of 17,673,862,500 Combined total value = 18,027,562,500

Strike 374.75 has a total call value of 495,855,000 versus a total put value of 15,748,087,500 Combined total value = 16,243,942,500

Strike 375 has a total call value of 516,948,750 versus a total put value of 15,544,575,000 Combined total value = 16,061,523,750

Strike 377.25 has a total call value of 919,721,250 versus a total put value of 14,038,582,500 Combined total value = 14,958,303,750

Strike 377.5 has a total call value of 966,566,250 versus a total put value of 13,876,042,500 Combined total value = 14,842,608,750

Strike 379.75 has a total call value of 1,426,443,750 versus a total put value of 12,485,171,250 Combined total value = 13,911,615,000

Strike 380 has a total call value of 1,485,438,750 versus a total put value of 12,335,928,750 Combined total value = 13,821,367,500

Strike 382.25 has a total call value of 2,454,401,250 versus a total put value of 11,288,902,500 Combined total value = 13,743,303,750

Strike 382.5 has a total call value of 2,568,105,000 versus a total put value of 11,177,291,250 Combined total value = 13,745,396,250

Strike 384.75 has a total call value of 3,641,253,750 versus a total put value of 10,221,086,250 Combined total value = 13,862,340,000

Strike 385 has a total call value of 3,770,178,750 versus a total put value of 10,119,228,750 Combined total value = 13,889,407,500

Strike 387.25 has a total call value of 5,158,316,250 versus a total put value of 9,373,218,750 Combined total value = 14,531,535,000

Strike 387.5 has a total call value of 5,316,738,750 versus a total put value of 9,291,712,500 Combined total value = 14,608,451,250

Strike 389.75 has a total call value of 7,092,461,250 versus a total put value of 8,558,156,250 Combined total value = 15,650,617,500

Strike 390 has a total call value of 7,297,458,750 versus a total put value of 8,476,650,000 Combined total value = 15,774,108,750

Strike 392.25 has a total call value of 9,553,410,000 versus a total put value of 7,997,636,250 Combined total value = 17,551,046,250

Strike 392.5 has a total call value of 9,807,243,750 versus a total put value of 7,944,412,500 Combined total value = 17,751,656,250

Strike 394.75 has a total call value of 12,119,388,750 versus a total put value of 7,465,398,750 Combined total value = 19,584,787,500

Strike 395 has a total call value of 12,380,107,500 versus a total put value of 7,412,175,000 Combined total value = 19,792,282,500

Strike 397.25 has a total call value of 14,859,922,500 versus a total put value of 6,947,741,250 Combined total value = 21,807,663,750

Strike 397.5 has a total call value of 15,139,642,500 versus a total put value of 6,896,137,500 Combined total value = 22,035,780,000

Strike 399.75 has a total call value of 17,699,647,500 versus a total put value of 6,431,703,750 Combined total value = 24,131,351,250

Strike 400 has a total call value of 17,988,243,750 versus a total put value of 6,380,100,000 Combined total value = 24,368,343,750

Strike 402.25 has a total call value of 21,031,818,750 versus a total put value of 6,013,777,500 Combined total value = 27,045,596,250

Strike 402.5 has a total call value of 21,369,993,750 versus a total put value of 5,973,075,000 Combined total value = 27,343,068,750

Strike 404.75 has a total call value of 24,446,677,500 versus a total put value of 5,606,752,500 Combined total value = 30,053,430,000

Strike 405 has a total call value of 24,788,531,250 versus a total put value of 5,566,050,000 Combined total value = 30,354,581,250

Strike 407.25 has a total call value of 27,911,385,000 versus a total put value of 5,208,232,500 Combined total value = 33,119,617,500

Strike 407.5 has a total call value of 28,258,368,750 versus a total put value of 5,168,475,000 Combined total value = 33,426,843,750

Strike 409.75 has a total call value of 31,381,222,500 versus a total put value of 4,810,657,500 Combined total value = 36,191,880,000

Strike 410 has a total call value of 31,728,206,250 versus a total put value of 4,770,900,000 Combined total value = 36,499,106,250

Strike 412.5 has a total call value of 35,507,193,750 versus a total put value of 4,373,325,000 Combined total value = 39,880,518,750

Strike 414.75 has a total call value of 38,908,282,500 versus a total put value of 4,015,507,500 Combined total value = 42,923,790,000

Strike 415 has a total call value of 39,286,181,250 versus a total put value of 3,975,750,000 Combined total value = 43,261,931,250

Strike 417.5 has a total call value of 43,072,931,250 versus a total put value of 3,578,175,000 Combined total value = 46,651,106,250

Strike 419.75 has a total call value of 46,481,006,250 versus a total put value of 3,220,357,500 Combined total value = 49,701,363,750

Strike 420 has a total call value of 46,861,605,000 versus a total put value of 3,180,600,000 Combined total value = 50,042,205,000

Strike 422.5 has a total call value of 50,719,905,000 versus a total put value of 2,783,025,000 Combined total value = 53,502,930,000

Strike 424.75 has a total call value of 54,192,375,000 versus a total put value of 2,425,207,500 Combined total value = 56,617,582,500

Strike 425 has a total call value of 54,578,205,000 versus a total put value of 2,385,450,000 Combined total value = 56,963,655,000

Strike 427.5 has a total call value of 58,436,505,000 versus a total put value of 1,987,875,000 Combined total value = 60,424,380,000

Strike 429.75 has a total call value of 61,908,975,000 versus a total put value of 1,630,057,500 Combined total value = 63,539,032,500

Strike 430 has a total call value of 62,296,998,750 versus a total put value of 1,590,300,000 Combined total value = 63,887,298,750

Strike 432.5 has a total call value of 66,189,048,750 versus a total put value of 1,192,725,000 Combined total value = 67,381,773,750

Strike 434.75 has a total call value of 69,691,893,750 versus a total put value of 834,907,500 Combined total value = 70,526,801,250

Strike 435 has a total call value of 70,081,098,750 versus a total put value of 795,150,000 Combined total value = 70,876,248,750

Strike 437.5 has a total call value of 73,973,148,750 versus a total put value of 397,575,000 Combined total value = 74,370,723,750

Strike 439.75 has a total call value of 77,475,993,750 versus a total put value of 39,757,500 Combined total value = 77,515,751,250

Strike 440 has a total call value of 77,865,198,750 versus a total put value of 0 Combined total value = 77,865,198,750

Strike 442.5 has a total call value of 81,757,248,750 versus a total put value of 0 Combined total value = 81,757,248,750

Strike 445 has a total call value of 85,649,298,750 versus a total put value of 0 Combined total value = 85,649,298,750

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	1140.4	1140
ABB	5283	5200
ABCAPITAL	354.3	350
ADANIENSOL	1015.2	990
ADANIENT	2288.4	2300
ADANIGREEN	1048.6	1040
ADANIPORTS	1516.8	1500
ALKEM	5600	5700
AMBER	6800	6700
AMBUJACEM	553.35	550
ANGELONE	2579	2600
APLAPOLLO	1727.4	1740
APOLLOHOSP	7058	7200
ASHOKLEY	166.08	160
ASIANPAINT	2796.5	2820
ASTRAL	1418.8	1440
AUBANK	975.6	960
AUROPHARMA	1184.5	1200
AXISBANK	1287.1	1280
BAJAJ-AUTO	8926	9000
BAJAJFINSV	2070.4	2060
BAJFINANCE	1015	1020
BANDHANBNK	150.12	150
BANKBARODA	284.45	290
BANKINDIA	141.7	142
BDL	1405.8	1440
BEL	390.95	400
BHARATFORG	1402.7	1400
BHARTIARTL	2071	2100
BHEL	283	282.5
BIOCON	385.6	390
BLUESTARCO	1809.3	1780
BOSCHLTD	36540	36500
BPCL	365.1	365
BRITANNIA	6013.5	5950
BSE	2692.2	2750
CAMS	753.7	780
CANBK	148.23	148
CDSL	1518.1	1560
CGPOWER	666.65	680
CHOLAFIN	1723.8	1700
CIPLA	1508	1520
COALINDIA	384.3	382.25
COFORGE	1870.5	1840
COLPAL	2163	2180
CONCOR	504.8	510
CROMPTON	252.8	260
CUMMINSIND	4545	4500
CYIENT	1154.8	1160
DABUR	496.8	500
DALBHARAT	2090.6	2020
DELHIVERY	407.9	420
DIVISLAB	6383	6400
DIXON	13659	13500
DLF	696	710
DMART	3835.1	3900
DRREDDY	1275.2	1270
EICHERMOT	7107	7150
ETERNAL	298.8	300
EXIDEIND	371.5	375
FEDERALBNK	265.25	260
FORTIS	865.2	880
GAIL	169.81	175
GLENMARK	1968.6	1940
GMRAIRPORT	105.21	102
GODREJCP	1155.1	1140
GODREJPROP	2068	2040
GRASIM	2824	2800
HAL	4336.9	4500
HAVELLS	1411.1	1420
HCLTECH	1683	1660
HDFCAMC	2612	2650
HDFCBANK	997.5	1000
HDFCLIFE	772.25	770
HEROMOTOCO	5949.5	6000
HFCL	66.32	68
HINDALCO	849.65	820
HINDPETRO	464.8	460
HINDUNILVR	2280.7	2300
HINDZINC	565.1	540
HUDCO	215.8	220
ICICIBANK	1366.3	1380
ICICIGI	1931.1	1960
ICICIPRULI	645.05	630
IDEA	11.58	11
IDFCFIRSTB	83.89	81
IEX	142.76	145
IIFL	573.2	560
INDHOTEL	732.25	730
INDIANB	784.2	800
INDIGO	4960.5	5000
INDUSINDBK	848.2	850
INDUSTOWER	410.75	410
INFY	1606	1600
INOXWIND	125.5	130
IOC	166.6	165
IRCTC	673.15	680
IREDA	135.61	140
IRFC	113.32	115
ITC	401.9	405
JINDALSTEL	1027.7	1020
JIOFIN	299.35	300
JSWENERGY	484	490
JSWSTEEL	1116.2	1140
JUBLFOOD	577.7	590
KALYANKJIL	486.45	480
KAYNES	4210.5	4400
KEI	4173	4100
KFINTECH	1049.4	1060
KOTAKBANK	2171	2160
KPITTECH	1225.4	1220
LAURUSLABS	1004.5	1000
LICHSGFIN	531	550
LICI	859.5	880
LODHA	1097.9	1100
LT	4080	4040
LTF	305.2	305
LTIM	6286.5	6200
LUPIN	2097	2080
M&M	3624.4	3700
MANAPPURAM	286.7	280
MANKIND	2152.2	2200
MARICO	735.2	730
MARUTI	16420	16300
MAXHEALTH	1074.8	1100
MAZDOCK	2454.2	2500
MCX	10242	10100
MFSL	1684.9	1700
MOTHERSON	120	116
MPHASIS	2895.3	2900
MUTHOOTFIN	3861	3750
NATIONALUM	279.1	270
NAUKRI	1350.6	1360
NBCC	115.74	113
NCC	161.93	167.5
NESTLEIND	1239.7	1230
NHPC	77.07	77
NMDC	77.75	76
NTPC	324.3	325
NUVAMA	7281	7200
NYKAA	249.35	255
OBEROIRLTY	1649.4	1640
OFSS	7987	8000
OIL	402.9	410
ONGC	233.1	239
PAGEIND	36710	37000
PATANJALI	532.95	540
PAYTM	1302.2	1300
PERSISTENT	6320	6300
PETRONET	268.8	275
PFC	340.6	360
PGEL	568.25	560
PHOENIXLTD	1778.3	1740
PIDILITIND	1477	1480
PIIND	3257.9	3350
PNB	118.46	120
PNBHOUSING	912.7	910
POLICYBZR	1906.6	1900
POLYCAB	7319	7300
POWERGRID	261.7	270
POWERINDIA	19440	19500
PPLPHARMA	172.53	177.5
PRESTIGE	1642.1	1660
RBLBANK	305.85	310
RECLTD	341.9	355
RELIANCE	1554.5	1540
RVNL	313.3	315
SAIL	131	132
SAMMAANCAP	148.72	155
SBICARD	868.9	880
SBILIFE	2027.7	2020
SBIN	966.55	965
SHREECEM	26415	26500
SHRIRAMFIN	857.7	840
SIEMENS	3171.5	3200
SOLARINDS	12226	12750
SONACOMS	486.35	495
SRF	2998.5	2950
SUNPHARMA	1796.8	1800
SUPREMEIND	3258.7	3350
SUZLON	53.11	54
SYNGENE	656	640
TATACONSUM	1158.8	1170
TATAELXSI	5060	5000
TATAMOTORS	0	320
TATAPOWER	381.2	390
TATASTEEL	173	170
TATATECH	657.5	670
TCS	3223.5	3200
TECHM	1583.2	1560
TIINDIA	2630.7	2650
TITAGARH	788	800
TITAN	3860	3840
TMPV	346	360
TORNTPHARM	3785.9	3750
TORNTPOWER	1287.4	1300
TRENT	4062.5	4200
TVSMOTOR	3630	3600
ULTRACEMCO	11669	11700
UNIONBANK	152.35	152.5
UNITDSPR	1441.8	1440
UNOMINDA	1240.4	1280
UPL	754.05	750
VBL	475.75	475
VEDL	545.55	530
VOLTAS	1375.2	1360
WIPRO	260.78	255
YESBANK	21.78	22
ZYDUSLIFE	919.95	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.

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