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.

CRUDEOILM

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.

Crude Oil Mini

5093 +13.00 (0.26%)

L: 5061 H: 5108

Max Pain - CRUDEOILM

18 Dec 2025 12:55 PM IST

Live

Expiry

Max Pain for CRUDEOILM is 5100

Historical data for CRUDEOILM-5100-CE

LTP (5100 CE)

189.55 6.5

Open Interest

12794 -2316

Historical data for CRUDEOILM-5100-PE

LTP (5100 PE)

181.7 -3.45

Open Interest

6540 -17

Strike 3900 has a total call value of 0 versus a total put value of 22,938,600,000 Combined total value = 22,938,600,000

Strike 3950 has a total call value of 0 versus a total put value of 21,926,100,000 Combined total value = 21,926,100,000

Strike 4000 has a total call value of 0 versus a total put value of 20,922,900,000 Combined total value = 20,922,900,000

Strike 4050 has a total call value of 0 versus a total put value of 19,919,700,000 Combined total value = 19,919,700,000

Strike 4100 has a total call value of 0 versus a total put value of 18,916,500,000 Combined total value = 18,916,500,000

Strike 4150 has a total call value of 0 versus a total put value of 17,913,300,000 Combined total value = 17,913,300,000

Strike 4200 has a total call value of 0 versus a total put value of 16,910,100,000 Combined total value = 16,910,100,000

Strike 4250 has a total call value of 0 versus a total put value of 15,906,900,000 Combined total value = 15,906,900,000

Strike 4300 has a total call value of 0 versus a total put value of 14,903,700,000 Combined total value = 14,903,700,000

Strike 4350 has a total call value of 0 versus a total put value of 13,900,500,000 Combined total value = 13,900,500,000

Strike 4400 has a total call value of 0 versus a total put value of 12,897,300,000 Combined total value = 12,897,300,000

Strike 4450 has a total call value of 0 versus a total put value of 11,896,350,000 Combined total value = 11,896,350,000

Strike 4500 has a total call value of 0 versus a total put value of 10,895,400,000 Combined total value = 10,895,400,000

Strike 4550 has a total call value of 0 versus a total put value of 9,894,450,000 Combined total value = 9,894,450,000

Strike 4600 has a total call value of 0 versus a total put value of 8,893,500,000 Combined total value = 8,893,500,000

Strike 4650 has a total call value of 0 versus a total put value of 7,898,050,000 Combined total value = 7,898,050,000

Strike 4700 has a total call value of 0 versus a total put value of 6,902,600,000 Combined total value = 6,902,600,000

Strike 4750 has a total call value of 0 versus a total put value of 5,939,000,000 Combined total value = 5,939,000,000

Strike 4800 has a total call value of 0 versus a total put value of 4,975,400,000 Combined total value = 4,975,400,000

Strike 4850 has a total call value of 0 versus a total put value of 4,074,550,000 Combined total value = 4,074,550,000

Strike 4900 has a total call value of 0 versus a total put value of 3,184,650,000 Combined total value = 3,184,650,000

Strike 4950 has a total call value of 1,650,000 versus a total put value of 2,365,650,000 Combined total value = 2,367,300,000

Strike 5000 has a total call value of 4,800,000 versus a total put value of 1,589,500,000 Combined total value = 1,594,300,000

Strike 5050 has a total call value of 101,500,000 versus a total put value of 949,400,000 Combined total value = 1,050,900,000

Strike 5100 has a total call value of 233,900,000 versus a total put value of 397,250,000 Combined total value = 631,150,000

Strike 5150 has a total call value of 1,006,000,000 versus a total put value of 172,100,000 Combined total value = 1,178,100,000

Strike 5200 has a total call value of 1,950,900,000 versus a total put value of 61,450,000 Combined total value = 2,012,350,000

Strike 5250 has a total call value of 3,210,000,000 versus a total put value of 27,750,000 Combined total value = 3,237,750,000

Strike 5300 has a total call value of 4,510,100,000 versus a total put value of 4,400,000 Combined total value = 4,514,500,000

Strike 5350 has a total call value of 6,918,600,000 versus a total put value of 3,300,000 Combined total value = 6,921,900,000

Strike 5400 has a total call value of 9,339,900,000 versus a total put value of 2,200,000 Combined total value = 9,342,100,000

Strike 5450 has a total call value of 11,930,900,000 versus a total put value of 1,100,000 Combined total value = 11,932,000,000

Strike 5500 has a total call value of 14,521,900,000 versus a total put value of 0 Combined total value = 14,521,900,000

Strike 5550 has a total call value of 17,194,400,000 versus a total put value of 0 Combined total value = 17,194,400,000

Strike 5600 has a total call value of 19,873,150,000 versus a total put value of 0 Combined total value = 19,873,150,000

Strike 5650 has a total call value of 22,590,150,000 versus a total put value of 0 Combined total value = 22,590,150,000

Strike 5700 has a total call value of 25,307,150,000 versus a total put value of 0 Combined total value = 25,307,150,000

Strike 5750 has a total call value of 28,025,250,000 versus a total put value of 0 Combined total value = 28,025,250,000

Strike 5800 has a total call value of 30,743,350,000 versus a total put value of 0 Combined total value = 30,743,350,000

Strike 5850 has a total call value of 33,472,500,000 versus a total put value of 0 Combined total value = 33,472,500,000

Strike 5900 has a total call value of 36,201,650,000 versus a total put value of 0 Combined total value = 36,201,650,000

Strike 5950 has a total call value of 38,939,450,000 versus a total put value of 0 Combined total value = 38,939,450,000

Strike 6000 has a total call value of 41,677,250,000 versus a total put value of 0 Combined total value = 41,677,250,000

Strike 6050 has a total call value of 44,415,050,000 versus a total put value of 0 Combined total value = 44,415,050,000

Strike 6100 has a total call value of 47,152,850,000 versus a total put value of 0 Combined total value = 47,152,850,000

Strike 6150 has a total call value of 49,890,650,000 versus a total put value of 0 Combined total value = 49,890,650,000

Strike 6200 has a total call value of 52,628,450,000 versus a total put value of 0 Combined total value = 52,628,450,000

Strike 6250 has a total call value of 55,366,250,000 versus a total put value of 0 Combined total value = 55,366,250,000

Strike 6300 has a total call value of 58,104,050,000 versus a total put value of 0 Combined total value = 58,104,050,000

Strike 6350 has a total call value of 60,841,850,000 versus a total put value of 0 Combined total value = 60,841,850,000

Strike 6400 has a total call value of 63,579,650,000 versus a total put value of 0 Combined total value = 63,579,650,000

Strike 6450 has a total call value of 66,317,450,000 versus a total put value of 0 Combined total value = 66,317,450,000

Strike 6500 has a total call value of 69,055,250,000 versus a total put value of 0 Combined total value = 69,055,250,000

Strike 6550 has a total call value of 71,951,850,000 versus a total put value of 0 Combined total value = 71,951,850,000

Strike 6600 has a total call value of 74,873,950,000 versus a total put value of 0 Combined total value = 74,873,950,000

Strike 6650 has a total call value of 77,810,200,000 versus a total put value of 0 Combined total value = 77,810,200,000

Strike 6700 has a total call value of 80,760,550,000 versus a total put value of 0 Combined total value = 80,760,550,000

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	1139.7	1140
ABB	5139	5200
ABCAPITAL	348.2	350
ADANIENSOL	987.8	990
ADANIENT	2241.5	2300
ADANIGREEN	1020.9	1020
ADANIPORTS	1492	1500
ALKEM	5562.5	5700
AMBER	6592	6800
AMBUJACEM	539.5	550
ANGELONE	2486.8	2550
APLAPOLLO	1793.6	1760
APOLLOHOSP	6933.5	7100
ASHOKLEY	169.78	160
ASIANPAINT	2767.5	2800
ASTRAL	1425.7	1460
AUBANK	987.6	960
AUROPHARMA	1209.2	1200
AXISBANK	1236.6	1240
BAJAJ-AUTO	8817.5	9000
BAJAJFINSV	2033.1	2060
BAJFINANCE	1006.9	1020
BANDHANBNK	146.73	150
BANKBARODA	290.25	290
BANKINDIA	143.2	143
BDL	1345	1380
BEL	385	400
BHARATFORG	1406.5	1400
BHARTIARTL	2108	2100
BHEL	274.1	280
BIOCON	392.75	390
BLUESTARCO	1850.9	1800
BOSCHLTD	35680	36000
BPCL	362.45	365
BRITANNIA	6033	6000
BSE	2690	2700
CAMS	744	770
CANBK	150.59	150
CDSL	1488.7	1540
CGPOWER	668.6	680
CHOLAFIN	1686.8	1700
CIPLA	1501	1520
COALINDIA	385.45	384.75
COFORGE	1844.4	1840
COLPAL	2089.4	2160
CONCOR	498.55	520
CROMPTON	259.35	265
CUMMINSIND	4382	4400
CYIENT	1143.5	1140
DABUR	493	500
DALBHARAT	2046	2040
DELHIVERY	401.1	410
DIVISLAB	6382.5	6400
DIXON	13370	13750
DLF	685.55	710
DMART	3779	3900
DRREDDY	1275.4	1270
EICHERMOT	7111	7100
ETERNAL	284.55	290
EXIDEIND	360.2	370
FEDERALBNK	265.5	260
FORTIS	866.4	890
GAIL	168.01	175
GLENMARK	1952.7	1940
GMRAIRPORT	100.24	102
GODREJCP	1181.2	1160
GODREJPROP	2004.6	2060
GRASIM	2819.5	2800
HAL	4262.5	4450
HAVELLS	1407.8	1440
HCLTECH	1661.2	1660
HDFCAMC	2705.1	2660
HDFCBANK	982.5	995
HDFCLIFE	756.9	770
HEROMOTOCO	5753	5900
HFCL	65.28	67
HINDALCO	861.95	820
HINDPETRO	463.15	460
HINDUNILVR	2275	2300
HINDZINC	593	560
HUDCO	208.44	220
ICICIBANK	1365	1370
ICICIGI	1952.8	1960
ICICIPRULI	641.5	630
IDEA	11.52	11
IDFCFIRSTB	84.19	82
IEX	141.24	145
IIFL	566.9	560
INDHOTEL	719.7	730
INDIANB	781.25	820
INDIGO	5110	5050
INDUSINDBK	838.85	850
INDUSTOWER	410.15	410
INFY	1624.9	1600
INOXWIND	125.37	130
IOC	162.2	162
IRCTC	665.9	690
IREDA	132.25	140
IRFC	111.95	116
ITC	401.25	405
JINDALSTEL	994.2	1020
JIOFIN	292.8	305
JSWENERGY	472.5	490
JSWSTEEL	1088.1	1120
JUBLFOOD	558.8	580
KALYANKJIL	471.65	480
KAYNES	4122	4300
KEI	4081.6	4100
KFINTECH	1056.9	1060
KOTAKBANK	2172.2	2160
KPITTECH	1164.9	1200
LAURUSLABS	1012.8	1000
LICHSGFIN	528	550
LICI	841.4	870
LODHA	1073.7	1100
LT	4055.5	4040
LTF	302.4	302.5
LTIM	6222.5	6200
LUPIN	2121.5	2100
M&M	3579.4	3650
MANAPPURAM	290.3	280
MANKIND	2121	2200
MARICO	741.85	740
MARUTI	16368	16200
MAXHEALTH	1053.3	1080
MAZDOCK	2373.8	2500
MCX	10162	10000
MFSL	1679.7	1680
MOTHERSON	117.26	115
MPHASIS	2893.3	2900
MUTHOOTFIN	3771	3750
NATIONALUM	282	270
NAUKRI	1345	1360
NBCC	108.47	111
NCC	154.9	165
NESTLEIND	1242.1	1240
NHPC	75.08	78
NMDC	77.1	77
NTPC	318.2	325
NUVAMA	7342	7300
NYKAA	243.85	252.5
OBEROIRLTY	1666.1	1660
OFSS	7712	8000
OIL	399.05	410
ONGC	232.51	237.5
PAGEIND	35860	37000
PATANJALI	553.2	550
PAYTM	1281.2	1300
PERSISTENT	6313.5	6300
PETRONET	268.3	278
PFC	336.8	355
PGEL	568.9	560
PHOENIXLTD	1802.6	1760
PIDILITIND	1452.3	1480
PIIND	3206	3300
PNB	119.42	120
PNBHOUSING	903.2	900
POLICYBZR	1822.9	1840
POLYCAB	7128	7200
POWERGRID	257.1	270
POWERINDIA	18320	19000
PPLPHARMA	166.33	177.5
PRESTIGE	1607.8	1640
RBLBANK	300.65	305
RECLTD	337.6	350
RELIANCE	1549.4	1540
RVNL	306.45	310
SAIL	129.78	132
SAMMAANCAP	146.09	155
SBICARD	852.15	870
SBILIFE	2015	2020
SBIN	979.5	970
SHREECEM	25835	26500
SHRIRAMFIN	872.75	850
SIEMENS	3080.4	3150
SOLARINDS	11764	12500
SONACOMS	486.1	500
SRF	3043.1	3000
SUNPHARMA	1738.5	1760
SUPREMEIND	3343.5	3400
SUZLON	51.81	54
SYNGENE	654.7	650
TATACONSUM	1179.6	1180
TATAELXSI	4999	5000
TATAMOTORS	0	320
TATAPOWER	375.35	390
TATASTEEL	169.81	170
TATATECH	644.25	670
TCS	3276	3200
TECHM	1594.5	1560
TIINDIA	2593.5	2700
TITAGARH	775.05	800
TITAN	3912.8	3860
TMPV	345.3	360
TORNTPHARM	3731.6	3750
TORNTPOWER	1259.5	1300
TRENT	4020.4	4200
TVSMOTOR	3589.2	3600
ULTRACEMCO	11500	11600
UNIONBANK	155.09	155
UNITDSPR	1398.2	1440
UNOMINDA	1234.1	1280
UPL	747.3	750
VBL	471.4	470
VEDL	581.4	550
VOLTAS	1413.6	1380
WIPRO	263.05	257.5
YESBANK	21.55	22
ZYDUSLIFE	915.35	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 CRUDEOILM

CRUDEOILM

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

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GOLD