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.

FINNIFTY

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.

Nifty Financial Services

27565.5 -19.05 (-0.07%)

L: 27529.7 H: 27722.7

Max Pain - FINNIFTY

25 Dec 2025 11:15 AM IST

Expiry

Max Pain for FINNIFTY is 27600

Historical data for FINNIFTY-27600-CE

LTP (27600 CE)

97.55 -58.65

Open Interest

1109 -76

Historical data for FINNIFTY-27600-PE

LTP (27600 PE)

115.25 -3.75

Open Interest

935 111

Strike 23000 has a total call value of 0 versus a total put value of 371,606,950,000 Combined total value = 371,606,950,000

Strike 23100 has a total call value of 650,000 versus a total put value of 362,603,150,000 Combined total value = 362,603,800,000

Strike 23200 has a total call value of 1,300,000 versus a total put value of 353,599,350,000 Combined total value = 353,600,650,000

Strike 23300 has a total call value of 1,950,000 versus a total put value of 344,595,550,000 Combined total value = 344,597,500,000

Strike 23400 has a total call value of 2,600,000 versus a total put value of 335,591,750,000 Combined total value = 335,594,350,000

Strike 23500 has a total call value of 3,250,000 versus a total put value of 326,587,950,000 Combined total value = 326,591,200,000

Strike 23550 has a total call value of 3,575,000 versus a total put value of 322,093,525,000 Combined total value = 322,097,100,000

Strike 23600 has a total call value of 3,900,000 versus a total put value of 317,599,100,000 Combined total value = 317,603,000,000

Strike 23650 has a total call value of 4,225,000 versus a total put value of 313,104,675,000 Combined total value = 313,108,900,000

Strike 23700 has a total call value of 4,550,000 versus a total put value of 308,610,250,000 Combined total value = 308,614,800,000

Strike 23750 has a total call value of 4,875,000 versus a total put value of 304,115,825,000 Combined total value = 304,120,700,000

Strike 23800 has a total call value of 5,200,000 versus a total put value of 299,621,400,000 Combined total value = 299,626,600,000

Strike 23850 has a total call value of 5,525,000 versus a total put value of 295,126,975,000 Combined total value = 295,132,500,000

Strike 23900 has a total call value of 5,850,000 versus a total put value of 290,632,550,000 Combined total value = 290,638,400,000

Strike 23950 has a total call value of 6,175,000 versus a total put value of 286,138,125,000 Combined total value = 286,144,300,000

Strike 24000 has a total call value of 6,500,000 versus a total put value of 281,643,700,000 Combined total value = 281,650,200,000

Strike 24050 has a total call value of 14,625,000 versus a total put value of 277,159,025,000 Combined total value = 277,173,650,000

Strike 24100 has a total call value of 22,750,000 versus a total put value of 272,674,350,000 Combined total value = 272,697,100,000

Strike 24150 has a total call value of 30,875,000 versus a total put value of 268,191,950,000 Combined total value = 268,222,825,000

Strike 24200 has a total call value of 39,000,000 versus a total put value of 263,709,550,000 Combined total value = 263,748,550,000

Strike 24250 has a total call value of 47,775,000 versus a total put value of 259,227,800,000 Combined total value = 259,275,575,000

Strike 24300 has a total call value of 56,550,000 versus a total put value of 254,746,050,000 Combined total value = 254,802,600,000

Strike 24350 has a total call value of 65,325,000 versus a total put value of 250,264,950,000 Combined total value = 250,330,275,000

Strike 24400 has a total call value of 74,100,000 versus a total put value of 245,783,850,000 Combined total value = 245,857,950,000

Strike 24450 has a total call value of 82,875,000 versus a total put value of 241,303,725,000 Combined total value = 241,386,600,000

Strike 24500 has a total call value of 91,650,000 versus a total put value of 236,823,600,000 Combined total value = 236,915,250,000

Strike 24550 has a total call value of 100,425,000 versus a total put value of 232,344,450,000 Combined total value = 232,444,875,000

Strike 24600 has a total call value of 109,200,000 versus a total put value of 227,865,300,000 Combined total value = 227,974,500,000

Strike 24650 has a total call value of 117,975,000 versus a total put value of 223,386,150,000 Combined total value = 223,504,125,000

Strike 24700 has a total call value of 126,750,000 versus a total put value of 218,907,000,000 Combined total value = 219,033,750,000

Strike 24750 has a total call value of 135,525,000 versus a total put value of 214,429,475,000 Combined total value = 214,565,000,000

Strike 24800 has a total call value of 144,300,000 versus a total put value of 209,951,950,000 Combined total value = 210,096,250,000

Strike 24850 has a total call value of 153,075,000 versus a total put value of 205,474,425,000 Combined total value = 205,627,500,000

Strike 24900 has a total call value of 161,850,000 versus a total put value of 200,996,900,000 Combined total value = 201,158,750,000

Strike 24950 has a total call value of 170,625,000 versus a total put value of 196,519,375,000 Combined total value = 196,690,000,000

Strike 25000 has a total call value of 179,400,000 versus a total put value of 192,041,850,000 Combined total value = 192,221,250,000

Strike 25050 has a total call value of 190,775,000 versus a total put value of 187,584,800,000 Combined total value = 187,775,575,000

Strike 25100 has a total call value of 202,150,000 versus a total put value of 183,127,750,000 Combined total value = 183,329,900,000

Strike 25150 has a total call value of 213,525,000 versus a total put value of 178,670,700,000 Combined total value = 178,884,225,000

Strike 25200 has a total call value of 224,900,000 versus a total put value of 174,213,650,000 Combined total value = 174,438,550,000

Strike 25250 has a total call value of 236,275,000 versus a total put value of 169,756,600,000 Combined total value = 169,992,875,000

Strike 25300 has a total call value of 247,650,000 versus a total put value of 165,299,550,000 Combined total value = 165,547,200,000

Strike 25350 has a total call value of 259,025,000 versus a total put value of 160,842,500,000 Combined total value = 161,101,525,000

Strike 25400 has a total call value of 270,400,000 versus a total put value of 156,385,450,000 Combined total value = 156,655,850,000

Strike 25450 has a total call value of 281,775,000 versus a total put value of 151,936,850,000 Combined total value = 152,218,625,000

Strike 25500 has a total call value of 293,150,000 versus a total put value of 147,488,250,000 Combined total value = 147,781,400,000

Strike 25550 has a total call value of 304,525,000 versus a total put value of 143,094,900,000 Combined total value = 143,399,425,000

Strike 25600 has a total call value of 315,900,000 versus a total put value of 138,701,550,000 Combined total value = 139,017,450,000

Strike 25650 has a total call value of 327,275,000 versus a total put value of 134,325,100,000 Combined total value = 134,652,375,000

Strike 25700 has a total call value of 338,650,000 versus a total put value of 129,948,650,000 Combined total value = 130,287,300,000

Strike 25750 has a total call value of 350,025,000 versus a total put value of 125,613,150,000 Combined total value = 125,963,175,000

Strike 25800 has a total call value of 361,400,000 versus a total put value of 121,277,650,000 Combined total value = 121,639,050,000

Strike 25850 has a total call value of 372,775,000 versus a total put value of 116,979,850,000 Combined total value = 117,352,625,000

Strike 25900 has a total call value of 384,150,000 versus a total put value of 112,682,050,000 Combined total value = 113,066,200,000

Strike 25950 has a total call value of 395,525,000 versus a total put value of 108,420,000,000 Combined total value = 108,815,525,000

Strike 26000 has a total call value of 406,900,000 versus a total put value of 104,157,950,000 Combined total value = 104,564,850,000

Strike 26050 has a total call value of 420,875,000 versus a total put value of 100,043,125,000 Combined total value = 100,464,000,000

Strike 26100 has a total call value of 434,850,000 versus a total put value of 95,940,325,000 Combined total value = 96,375,175,000

Strike 26150 has a total call value of 448,825,000 versus a total put value of 91,900,900,000 Combined total value = 92,349,725,000

Strike 26200 has a total call value of 462,800,000 versus a total put value of 87,901,125,000 Combined total value = 88,363,925,000

Strike 26250 has a total call value of 476,775,000 versus a total put value of 84,016,400,000 Combined total value = 84,493,175,000

Strike 26300 has a total call value of 490,750,000 versus a total put value of 80,142,400,000 Combined total value = 80,633,150,000

Strike 26350 has a total call value of 504,725,000 versus a total put value of 76,305,125,000 Combined total value = 76,809,850,000

Strike 26400 has a total call value of 519,025,000 versus a total put value of 72,485,725,000 Combined total value = 73,004,750,000

Strike 26450 has a total call value of 533,325,000 versus a total put value of 68,712,800,000 Combined total value = 69,246,125,000

Strike 26500 has a total call value of 547,950,000 versus a total put value of 64,978,875,000 Combined total value = 65,526,825,000

Strike 26550 has a total call value of 565,500,000 versus a total put value of 61,439,300,000 Combined total value = 62,004,800,000

Strike 26600 has a total call value of 583,050,000 versus a total put value of 57,907,525,000 Combined total value = 58,490,575,000

Strike 26650 has a total call value of 600,600,000 versus a total put value of 54,411,175,000 Combined total value = 55,011,775,000

Strike 26700 has a total call value of 618,150,000 versus a total put value of 50,914,825,000 Combined total value = 51,532,975,000

Strike 26750 has a total call value of 635,700,000 versus a total put value of 47,507,200,000 Combined total value = 48,142,900,000

Strike 26800 has a total call value of 653,250,000 versus a total put value of 44,114,525,000 Combined total value = 44,767,775,000

Strike 26850 has a total call value of 670,800,000 versus a total put value of 40,776,775,000 Combined total value = 41,447,575,000

Strike 26900 has a total call value of 688,350,000 versus a total put value of 37,439,025,000 Combined total value = 38,127,375,000

Strike 26950 has a total call value of 705,900,000 versus a total put value of 34,171,475,000 Combined total value = 34,877,375,000

Strike 27000 has a total call value of 723,450,000 versus a total put value of 30,928,950,000 Combined total value = 31,652,400,000

Strike 27050 has a total call value of 754,325,000 versus a total put value of 27,918,800,000 Combined total value = 28,673,125,000

Strike 27100 has a total call value of 785,200,000 versus a total put value of 24,908,975,000 Combined total value = 25,694,175,000

Strike 27150 has a total call value of 817,050,000 versus a total put value of 22,006,400,000 Combined total value = 22,823,450,000

Strike 27200 has a total call value of 853,450,000 versus a total put value of 19,133,075,000 Combined total value = 19,986,525,000

Strike 27250 has a total call value of 953,550,000 versus a total put value of 16,516,500,000 Combined total value = 17,470,050,000

Strike 27300 has a total call value of 1,062,425,000 versus a total put value of 13,953,225,000 Combined total value = 15,015,650,000

Strike 27350 has a total call value of 1,224,925,000 versus a total put value of 11,733,150,000 Combined total value = 12,958,075,000

Strike 27400 has a total call value of 1,411,150,000 versus a total put value of 9,589,775,000 Combined total value = 11,000,925,000

Strike 27450 has a total call value of 1,685,775,000 versus a total put value of 7,736,300,000 Combined total value = 9,422,075,000

Strike 27500 has a total call value of 1,992,250,000 versus a total put value of 6,003,725,000 Combined total value = 7,995,975,000

Strike 27550 has a total call value of 2,899,975,000 versus a total put value of 4,855,175,000 Combined total value = 7,755,150,000

Strike 27600 has a total call value of 3,875,300,000 versus a total put value of 3,810,300,000 Combined total value = 7,685,600,000

Strike 27650 has a total call value of 5,211,050,000 versus a total put value of 3,069,300,000 Combined total value = 8,280,350,000

Strike 27700 has a total call value of 6,708,000,000 versus a total put value of 2,388,100,000 Combined total value = 9,096,100,000

Strike 27750 has a total call value of 8,673,600,000 versus a total put value of 1,915,875,000 Combined total value = 10,589,475,000

Strike 27800 has a total call value of 10,872,875,000 versus a total put value of 1,471,925,000 Combined total value = 12,344,800,000

Strike 27850 has a total call value of 13,316,875,000 versus a total put value of 1,137,500,000 Combined total value = 14,454,375,000

Strike 27900 has a total call value of 15,910,700,000 versus a total put value of 850,525,000 Combined total value = 16,761,225,000

Strike 27950 has a total call value of 18,719,025,000 versus a total put value of 620,425,000 Combined total value = 19,339,450,000

Strike 28000 has a total call value of 21,599,175,000 versus a total put value of 403,975,000 Combined total value = 22,003,150,000

Strike 28050 has a total call value of 24,905,075,000 versus a total put value of 291,525,000 Combined total value = 25,196,600,000

Strike 28100 has a total call value of 28,274,350,000 versus a total put value of 188,500,000 Combined total value = 28,462,850,000

Strike 28150 has a total call value of 31,840,900,000 versus a total put value of 116,025,000 Combined total value = 31,956,925,000

Strike 28200 has a total call value of 35,459,775,000 versus a total put value of 49,400,000 Combined total value = 35,509,175,000

Strike 28250 has a total call value of 39,463,450,000 versus a total put value of 37,375,000 Combined total value = 39,500,825,000

Strike 28300 has a total call value of 43,535,050,000 versus a total put value of 29,900,000 Combined total value = 43,564,950,000

Strike 28350 has a total call value of 47,710,000,000 versus a total put value of 22,425,000 Combined total value = 47,732,425,000

Strike 28400 has a total call value of 51,915,825,000 versus a total put value of 14,950,000 Combined total value = 51,930,775,000

Strike 28450 has a total call value of 56,209,075,000 versus a total put value of 7,475,000 Combined total value = 56,216,550,000

Strike 28500 has a total call value of 60,516,300,000 versus a total put value of 0 Combined total value = 60,516,300,000

Strike 28550 has a total call value of 65,180,375,000 versus a total put value of 0 Combined total value = 65,180,375,000

Strike 28600 has a total call value of 69,855,175,000 versus a total put value of 0 Combined total value = 69,855,175,000

Strike 28650 has a total call value of 74,643,075,000 versus a total put value of 0 Combined total value = 74,643,075,000

Strike 28700 has a total call value of 79,474,525,000 versus a total put value of 0 Combined total value = 79,474,525,000

Strike 28750 has a total call value of 84,345,300,000 versus a total put value of 0 Combined total value = 84,345,300,000

Strike 28800 has a total call value of 89,266,125,000 versus a total put value of 0 Combined total value = 89,266,125,000

Strike 28850 has a total call value of 94,223,675,000 versus a total put value of 0 Combined total value = 94,223,675,000

Strike 28900 has a total call value of 99,182,850,000 versus a total put value of 0 Combined total value = 99,182,850,000

Strike 28950 has a total call value of 104,185,250,000 versus a total put value of 0 Combined total value = 104,185,250,000

Strike 29000 has a total call value of 109,194,150,000 versus a total put value of 0 Combined total value = 109,194,150,000

Strike 29050 has a total call value of 114,550,150,000 versus a total put value of 0 Combined total value = 114,550,150,000

Strike 29100 has a total call value of 119,913,950,000 versus a total put value of 0 Combined total value = 119,913,950,000

Strike 29150 has a total call value of 125,282,300,000 versus a total put value of 0 Combined total value = 125,282,300,000

Strike 29200 has a total call value of 130,650,650,000 versus a total put value of 0 Combined total value = 130,650,650,000

Strike 29250 has a total call value of 136,038,825,000 versus a total put value of 0 Combined total value = 136,038,825,000

Strike 29300 has a total call value of 141,427,000,000 versus a total put value of 0 Combined total value = 141,427,000,000

Strike 29350 has a total call value of 146,815,175,000 versus a total put value of 0 Combined total value = 146,815,175,000

Strike 29400 has a total call value of 152,203,350,000 versus a total put value of 0 Combined total value = 152,203,350,000

Strike 29450 has a total call value of 157,596,725,000 versus a total put value of 0 Combined total value = 157,596,725,000

Strike 29500 has a total call value of 162,990,100,000 versus a total put value of 0 Combined total value = 162,990,100,000

Strike 29550 has a total call value of 168,472,850,000 versus a total put value of 0 Combined total value = 168,472,850,000

Strike 29600 has a total call value of 173,955,600,000 versus a total put value of 0 Combined total value = 173,955,600,000

Strike 29650 has a total call value of 179,517,000,000 versus a total put value of 0 Combined total value = 179,517,000,000

Strike 29700 has a total call value of 185,078,400,000 versus a total put value of 0 Combined total value = 185,078,400,000

Strike 29750 has a total call value of 190,640,775,000 versus a total put value of 0 Combined total value = 190,640,775,000

Strike 29800 has a total call value of 196,203,150,000 versus a total put value of 0 Combined total value = 196,203,150,000

Strike 29850 has a total call value of 201,769,425,000 versus a total put value of 0 Combined total value = 201,769,425,000

Strike 29900 has a total call value of 207,335,700,000 versus a total put value of 0 Combined total value = 207,335,700,000

Strike 29950 has a total call value of 212,908,800,000 versus a total put value of 0 Combined total value = 212,908,800,000

Strike 30000 has a total call value of 218,481,900,000 versus a total put value of 0 Combined total value = 218,481,900,000

Strike 30050 has a total call value of 224,130,400,000 versus a total put value of 0 Combined total value = 224,130,400,000

Strike 30100 has a total call value of 229,778,900,000 versus a total put value of 0 Combined total value = 229,778,900,000

Strike 30150 has a total call value of 235,427,400,000 versus a total put value of 0 Combined total value = 235,427,400,000

Strike 30200 has a total call value of 241,075,900,000 versus a total put value of 0 Combined total value = 241,075,900,000

Strike 30250 has a total call value of 246,724,400,000 versus a total put value of 0 Combined total value = 246,724,400,000

Strike 30300 has a total call value of 252,372,900,000 versus a total put value of 0 Combined total value = 252,372,900,000

Strike 30350 has a total call value of 258,021,400,000 versus a total put value of 0 Combined total value = 258,021,400,000

Strike 30400 has a total call value of 263,669,900,000 versus a total put value of 0 Combined total value = 263,669,900,000

Strike 30450 has a total call value of 269,319,050,000 versus a total put value of 0 Combined total value = 269,319,050,000

Strike 30500 has a total call value of 274,968,200,000 versus a total put value of 0 Combined total value = 274,968,200,000

Strike 30550 has a total call value of 280,677,150,000 versus a total put value of 0 Combined total value = 280,677,150,000

Strike 30600 has a total call value of 286,386,100,000 versus a total put value of 0 Combined total value = 286,386,100,000

Strike 30650 has a total call value of 292,095,050,000 versus a total put value of 0 Combined total value = 292,095,050,000

Strike 30700 has a total call value of 297,804,000,000 versus a total put value of 0 Combined total value = 297,804,000,000

Strike 30750 has a total call value of 303,512,950,000 versus a total put value of 0 Combined total value = 303,512,950,000

Strike 30800 has a total call value of 309,221,900,000 versus a total put value of 0 Combined total value = 309,221,900,000

Strike 30850 has a total call value of 314,930,850,000 versus a total put value of 0 Combined total value = 314,930,850,000

Strike 30900 has a total call value of 320,639,800,000 versus a total put value of 0 Combined total value = 320,639,800,000

Strike 30950 has a total call value of 326,348,750,000 versus a total put value of 0 Combined total value = 326,348,750,000

Strike 31000 has a total call value of 332,057,700,000 versus a total put value of 0 Combined total value = 332,057,700,000

Max-Pain Table for Stocks

Max-Pain Table Expiry

Commodity Max-Pain Table

Index Max-Pain Table

LTP > Max Pain Bearish

LTP < Max Pain Bullish

Frequently Asked Questions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Max Pain becomes increasingly relevant as option expiration approaches:

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

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

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