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.

GOLDM

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.

Gold Mini

142934 +987.00 (0.70%)

L: 142156 H: 143350

Max Pain - GOLDM

14 Jan 2026 11:58 PM IST

Market Closed

Expiry

Max-Pain

1,40,000

DFC

7D Avg

Reliability

14D Avg

Reliability

21D Avg

Reliability

Max Pain for GOLDM is 140000

Historical data for GOLDM-140000-CE

LTP (140000 CE)

4208 40.5

Open Interest

2263 -348

Historical data for GOLDM-140000-PE

LTP (140000 PE)

1310.5 -30

Open Interest

2756 -170

Strike 117000 has a total call value of 0 versus a total put value of 6,123,609,000,000 Combined total value = 6,123,609,000,000

Strike 117100 has a total call value of 0 versus a total put value of 6,088,620,000,000 Combined total value = 6,088,620,000,000

Strike 117200 has a total call value of 0 versus a total put value of 6,053,631,000,000 Combined total value = 6,053,631,000,000

Strike 117300 has a total call value of 0 versus a total put value of 6,018,642,000,000 Combined total value = 6,018,642,000,000

Strike 117400 has a total call value of 0 versus a total put value of 5,983,653,000,000 Combined total value = 5,983,653,000,000

Strike 117500 has a total call value of 0 versus a total put value of 5,948,664,000,000 Combined total value = 5,948,664,000,000

Strike 117600 has a total call value of 0 versus a total put value of 5,913,675,000,000 Combined total value = 5,913,675,000,000

Strike 117700 has a total call value of 0 versus a total put value of 5,878,686,000,000 Combined total value = 5,878,686,000,000

Strike 117800 has a total call value of 0 versus a total put value of 5,843,697,000,000 Combined total value = 5,843,697,000,000

Strike 117900 has a total call value of 0 versus a total put value of 5,808,708,000,000 Combined total value = 5,808,708,000,000

Strike 118000 has a total call value of 0 versus a total put value of 5,773,719,000,000 Combined total value = 5,773,719,000,000

Strike 118100 has a total call value of 0 versus a total put value of 5,738,730,000,000 Combined total value = 5,738,730,000,000

Strike 118200 has a total call value of 0 versus a total put value of 5,703,741,000,000 Combined total value = 5,703,741,000,000

Strike 118300 has a total call value of 0 versus a total put value of 5,668,752,000,000 Combined total value = 5,668,752,000,000

Strike 118400 has a total call value of 0 versus a total put value of 5,633,763,000,000 Combined total value = 5,633,763,000,000

Strike 118500 has a total call value of 0 versus a total put value of 5,598,774,000,000 Combined total value = 5,598,774,000,000

Strike 118600 has a total call value of 0 versus a total put value of 5,563,785,000,000 Combined total value = 5,563,785,000,000

Strike 118700 has a total call value of 0 versus a total put value of 5,528,796,000,000 Combined total value = 5,528,796,000,000

Strike 118800 has a total call value of 0 versus a total put value of 5,493,807,000,000 Combined total value = 5,493,807,000,000

Strike 118900 has a total call value of 0 versus a total put value of 5,458,818,000,000 Combined total value = 5,458,818,000,000

Strike 119000 has a total call value of 0 versus a total put value of 5,423,829,000,000 Combined total value = 5,423,829,000,000

Strike 119100 has a total call value of 0 versus a total put value of 5,388,840,000,000 Combined total value = 5,388,840,000,000

Strike 119200 has a total call value of 0 versus a total put value of 5,353,851,000,000 Combined total value = 5,353,851,000,000

Strike 119300 has a total call value of 0 versus a total put value of 5,318,862,000,000 Combined total value = 5,318,862,000,000

Strike 119400 has a total call value of 0 versus a total put value of 5,283,873,000,000 Combined total value = 5,283,873,000,000

Strike 119500 has a total call value of 0 versus a total put value of 5,248,884,000,000 Combined total value = 5,248,884,000,000

Strike 119600 has a total call value of 0 versus a total put value of 5,213,895,000,000 Combined total value = 5,213,895,000,000

Strike 119700 has a total call value of 0 versus a total put value of 5,178,906,000,000 Combined total value = 5,178,906,000,000

Strike 119800 has a total call value of 0 versus a total put value of 5,143,917,000,000 Combined total value = 5,143,917,000,000

Strike 119900 has a total call value of 0 versus a total put value of 5,108,928,000,000 Combined total value = 5,108,928,000,000

Strike 120000 has a total call value of 0 versus a total put value of 5,073,939,000,000 Combined total value = 5,073,939,000,000

Strike 120100 has a total call value of 0 versus a total put value of 5,040,282,000,000 Combined total value = 5,040,282,000,000

Strike 120200 has a total call value of 0 versus a total put value of 5,006,625,000,000 Combined total value = 5,006,625,000,000

Strike 120300 has a total call value of 0 versus a total put value of 4,972,968,000,000 Combined total value = 4,972,968,000,000

Strike 120400 has a total call value of 0 versus a total put value of 4,939,311,000,000 Combined total value = 4,939,311,000,000

Strike 120500 has a total call value of 0 versus a total put value of 4,905,654,000,000 Combined total value = 4,905,654,000,000

Strike 120600 has a total call value of 0 versus a total put value of 4,871,997,000,000 Combined total value = 4,871,997,000,000

Strike 120700 has a total call value of 0 versus a total put value of 4,838,340,000,000 Combined total value = 4,838,340,000,000

Strike 120800 has a total call value of 0 versus a total put value of 4,804,683,000,000 Combined total value = 4,804,683,000,000

Strike 120900 has a total call value of 0 versus a total put value of 4,771,026,000,000 Combined total value = 4,771,026,000,000

Strike 121000 has a total call value of 0 versus a total put value of 4,737,369,000,000 Combined total value = 4,737,369,000,000

Strike 121100 has a total call value of 0 versus a total put value of 4,703,712,000,000 Combined total value = 4,703,712,000,000

Strike 121200 has a total call value of 0 versus a total put value of 4,670,055,000,000 Combined total value = 4,670,055,000,000

Strike 121300 has a total call value of 0 versus a total put value of 4,636,398,000,000 Combined total value = 4,636,398,000,000

Strike 121400 has a total call value of 0 versus a total put value of 4,602,741,000,000 Combined total value = 4,602,741,000,000

Strike 121500 has a total call value of 0 versus a total put value of 4,569,084,000,000 Combined total value = 4,569,084,000,000

Strike 121600 has a total call value of 0 versus a total put value of 4,535,427,000,000 Combined total value = 4,535,427,000,000

Strike 121700 has a total call value of 0 versus a total put value of 4,501,770,000,000 Combined total value = 4,501,770,000,000

Strike 121800 has a total call value of 0 versus a total put value of 4,468,113,000,000 Combined total value = 4,468,113,000,000

Strike 121900 has a total call value of 0 versus a total put value of 4,434,456,000,000 Combined total value = 4,434,456,000,000

Strike 122000 has a total call value of 0 versus a total put value of 4,400,799,000,000 Combined total value = 4,400,799,000,000

Strike 122100 has a total call value of 0 versus a total put value of 4,367,142,000,000 Combined total value = 4,367,142,000,000

Strike 122200 has a total call value of 0 versus a total put value of 4,333,485,000,000 Combined total value = 4,333,485,000,000

Strike 122300 has a total call value of 0 versus a total put value of 4,299,828,000,000 Combined total value = 4,299,828,000,000

Strike 122400 has a total call value of 0 versus a total put value of 4,266,171,000,000 Combined total value = 4,266,171,000,000

Strike 122500 has a total call value of 0 versus a total put value of 4,232,514,000,000 Combined total value = 4,232,514,000,000

Strike 122600 has a total call value of 0 versus a total put value of 4,198,857,000,000 Combined total value = 4,198,857,000,000

Strike 122700 has a total call value of 0 versus a total put value of 4,165,200,000,000 Combined total value = 4,165,200,000,000

Strike 122800 has a total call value of 0 versus a total put value of 4,131,543,000,000 Combined total value = 4,131,543,000,000

Strike 122900 has a total call value of 0 versus a total put value of 4,097,886,000,000 Combined total value = 4,097,886,000,000

Strike 123000 has a total call value of 0 versus a total put value of 4,064,229,000,000 Combined total value = 4,064,229,000,000

Strike 123100 has a total call value of 0 versus a total put value of 4,030,572,000,000 Combined total value = 4,030,572,000,000

Strike 123200 has a total call value of 0 versus a total put value of 3,996,915,000,000 Combined total value = 3,996,915,000,000

Strike 123300 has a total call value of 0 versus a total put value of 3,963,258,000,000 Combined total value = 3,963,258,000,000

Strike 123400 has a total call value of 0 versus a total put value of 3,929,601,000,000 Combined total value = 3,929,601,000,000

Strike 123500 has a total call value of 0 versus a total put value of 3,895,944,000,000 Combined total value = 3,895,944,000,000

Strike 123600 has a total call value of 0 versus a total put value of 3,862,287,000,000 Combined total value = 3,862,287,000,000

Strike 123700 has a total call value of 0 versus a total put value of 3,828,630,000,000 Combined total value = 3,828,630,000,000

Strike 123800 has a total call value of 0 versus a total put value of 3,794,973,000,000 Combined total value = 3,794,973,000,000

Strike 123900 has a total call value of 0 versus a total put value of 3,761,316,000,000 Combined total value = 3,761,316,000,000

Strike 124000 has a total call value of 0 versus a total put value of 3,727,659,000,000 Combined total value = 3,727,659,000,000

Strike 124100 has a total call value of 0 versus a total put value of 3,694,184,000,000 Combined total value = 3,694,184,000,000

Strike 124200 has a total call value of 0 versus a total put value of 3,660,709,000,000 Combined total value = 3,660,709,000,000

Strike 124300 has a total call value of 0 versus a total put value of 3,627,234,000,000 Combined total value = 3,627,234,000,000

Strike 124400 has a total call value of 0 versus a total put value of 3,593,759,000,000 Combined total value = 3,593,759,000,000

Strike 124500 has a total call value of 0 versus a total put value of 3,560,284,000,000 Combined total value = 3,560,284,000,000

Strike 124600 has a total call value of 0 versus a total put value of 3,526,809,000,000 Combined total value = 3,526,809,000,000

Strike 124700 has a total call value of 0 versus a total put value of 3,493,334,000,000 Combined total value = 3,493,334,000,000

Strike 124800 has a total call value of 0 versus a total put value of 3,459,859,000,000 Combined total value = 3,459,859,000,000

Strike 124900 has a total call value of 0 versus a total put value of 3,426,384,000,000 Combined total value = 3,426,384,000,000

Strike 125000 has a total call value of 0 versus a total put value of 3,392,909,000,000 Combined total value = 3,392,909,000,000

Strike 125100 has a total call value of 822,000,000 versus a total put value of 3,363,072,000,000 Combined total value = 3,363,894,000,000

Strike 125200 has a total call value of 1,644,000,000 versus a total put value of 3,333,235,000,000 Combined total value = 3,334,879,000,000

Strike 125300 has a total call value of 2,466,000,000 versus a total put value of 3,303,398,000,000 Combined total value = 3,305,864,000,000

Strike 125400 has a total call value of 3,288,000,000 versus a total put value of 3,273,561,000,000 Combined total value = 3,276,849,000,000

Strike 125500 has a total call value of 4,110,000,000 versus a total put value of 3,243,724,000,000 Combined total value = 3,247,834,000,000

Strike 125600 has a total call value of 4,932,000,000 versus a total put value of 3,213,887,000,000 Combined total value = 3,218,819,000,000

Strike 125700 has a total call value of 5,754,000,000 versus a total put value of 3,184,050,000,000 Combined total value = 3,189,804,000,000

Strike 125800 has a total call value of 6,576,000,000 versus a total put value of 3,154,213,000,000 Combined total value = 3,160,789,000,000

Strike 125900 has a total call value of 7,398,000,000 versus a total put value of 3,124,376,000,000 Combined total value = 3,131,774,000,000

Strike 126000 has a total call value of 8,220,000,000 versus a total put value of 3,094,539,000,000 Combined total value = 3,102,759,000,000

Strike 126100 has a total call value of 9,042,000,000 versus a total put value of 3,065,032,000,000 Combined total value = 3,074,074,000,000

Strike 126200 has a total call value of 9,864,000,000 versus a total put value of 3,035,525,000,000 Combined total value = 3,045,389,000,000

Strike 126300 has a total call value of 10,686,000,000 versus a total put value of 3,006,018,000,000 Combined total value = 3,016,704,000,000

Strike 126400 has a total call value of 11,508,000,000 versus a total put value of 2,976,511,000,000 Combined total value = 2,988,019,000,000

Strike 126500 has a total call value of 12,330,000,000 versus a total put value of 2,947,004,000,000 Combined total value = 2,959,334,000,000

Strike 126600 has a total call value of 13,152,000,000 versus a total put value of 2,917,497,000,000 Combined total value = 2,930,649,000,000

Strike 126700 has a total call value of 13,974,000,000 versus a total put value of 2,887,990,000,000 Combined total value = 2,901,964,000,000

Strike 126800 has a total call value of 14,796,000,000 versus a total put value of 2,858,483,000,000 Combined total value = 2,873,279,000,000

Strike 126900 has a total call value of 15,618,000,000 versus a total put value of 2,828,976,000,000 Combined total value = 2,844,594,000,000

Strike 127000 has a total call value of 16,440,000,000 versus a total put value of 2,799,469,000,000 Combined total value = 2,815,909,000,000

Strike 127100 has a total call value of 17,262,000,000 versus a total put value of 2,770,449,000,000 Combined total value = 2,787,711,000,000

Strike 127200 has a total call value of 18,084,000,000 versus a total put value of 2,741,429,000,000 Combined total value = 2,759,513,000,000

Strike 127300 has a total call value of 18,906,000,000 versus a total put value of 2,712,409,000,000 Combined total value = 2,731,315,000,000

Strike 127400 has a total call value of 19,728,000,000 versus a total put value of 2,683,389,000,000 Combined total value = 2,703,117,000,000

Strike 127500 has a total call value of 20,550,000,000 versus a total put value of 2,654,369,000,000 Combined total value = 2,674,919,000,000

Strike 127600 has a total call value of 21,372,000,000 versus a total put value of 2,625,349,000,000 Combined total value = 2,646,721,000,000

Strike 127700 has a total call value of 22,194,000,000 versus a total put value of 2,596,329,000,000 Combined total value = 2,618,523,000,000

Strike 127800 has a total call value of 23,016,000,000 versus a total put value of 2,567,309,000,000 Combined total value = 2,590,325,000,000

Strike 127900 has a total call value of 23,838,000,000 versus a total put value of 2,538,289,000,000 Combined total value = 2,562,127,000,000

Strike 128000 has a total call value of 24,660,000,000 versus a total put value of 2,509,269,000,000 Combined total value = 2,533,929,000,000

Strike 128100 has a total call value of 25,482,000,000 versus a total put value of 2,480,980,000,000 Combined total value = 2,506,462,000,000

Strike 128200 has a total call value of 26,304,000,000 versus a total put value of 2,452,691,000,000 Combined total value = 2,478,995,000,000

Strike 128300 has a total call value of 27,126,000,000 versus a total put value of 2,424,402,000,000 Combined total value = 2,451,528,000,000

Strike 128400 has a total call value of 27,948,000,000 versus a total put value of 2,396,113,000,000 Combined total value = 2,424,061,000,000

Strike 128500 has a total call value of 28,770,000,000 versus a total put value of 2,367,824,000,000 Combined total value = 2,396,594,000,000

Strike 128600 has a total call value of 29,592,000,000 versus a total put value of 2,339,535,000,000 Combined total value = 2,369,127,000,000

Strike 128700 has a total call value of 30,414,000,000 versus a total put value of 2,311,246,000,000 Combined total value = 2,341,660,000,000

Strike 128800 has a total call value of 31,236,000,000 versus a total put value of 2,282,957,000,000 Combined total value = 2,314,193,000,000

Strike 128900 has a total call value of 32,058,000,000 versus a total put value of 2,254,668,000,000 Combined total value = 2,286,726,000,000

Strike 129000 has a total call value of 32,880,000,000 versus a total put value of 2,226,379,000,000 Combined total value = 2,259,259,000,000

Strike 129100 has a total call value of 33,702,000,000 versus a total put value of 2,198,820,000,000 Combined total value = 2,232,522,000,000

Strike 129200 has a total call value of 34,524,000,000 versus a total put value of 2,171,261,000,000 Combined total value = 2,205,785,000,000

Strike 129300 has a total call value of 35,346,000,000 versus a total put value of 2,143,702,000,000 Combined total value = 2,179,048,000,000

Strike 129400 has a total call value of 36,168,000,000 versus a total put value of 2,116,143,000,000 Combined total value = 2,152,311,000,000

Strike 129500 has a total call value of 36,990,000,000 versus a total put value of 2,088,584,000,000 Combined total value = 2,125,574,000,000

Strike 129600 has a total call value of 37,812,000,000 versus a total put value of 2,061,025,000,000 Combined total value = 2,098,837,000,000

Strike 129700 has a total call value of 38,634,000,000 versus a total put value of 2,033,466,000,000 Combined total value = 2,072,100,000,000

Strike 129800 has a total call value of 39,456,000,000 versus a total put value of 2,005,907,000,000 Combined total value = 2,045,363,000,000

Strike 129900 has a total call value of 40,278,000,000 versus a total put value of 1,978,348,000,000 Combined total value = 2,018,626,000,000

Strike 130000 has a total call value of 41,100,000,000 versus a total put value of 1,950,789,000,000 Combined total value = 1,991,889,000,000

Strike 130100 has a total call value of 42,307,000,000 versus a total put value of 1,926,245,000,000 Combined total value = 1,968,552,000,000

Strike 130200 has a total call value of 43,514,000,000 versus a total put value of 1,901,701,000,000 Combined total value = 1,945,215,000,000

Strike 130300 has a total call value of 44,721,000,000 versus a total put value of 1,877,157,000,000 Combined total value = 1,921,878,000,000

Strike 130400 has a total call value of 45,928,000,000 versus a total put value of 1,852,613,000,000 Combined total value = 1,898,541,000,000

Strike 130500 has a total call value of 47,135,000,000 versus a total put value of 1,828,069,000,000 Combined total value = 1,875,204,000,000

Strike 130600 has a total call value of 48,342,000,000 versus a total put value of 1,803,525,000,000 Combined total value = 1,851,867,000,000

Strike 130700 has a total call value of 49,549,000,000 versus a total put value of 1,778,981,000,000 Combined total value = 1,828,530,000,000

Strike 130800 has a total call value of 50,756,000,000 versus a total put value of 1,754,437,000,000 Combined total value = 1,805,193,000,000

Strike 130900 has a total call value of 51,963,000,000 versus a total put value of 1,729,893,000,000 Combined total value = 1,781,856,000,000

Strike 131000 has a total call value of 53,170,000,000 versus a total put value of 1,705,349,000,000 Combined total value = 1,758,519,000,000

Strike 131100 has a total call value of 54,377,000,000 versus a total put value of 1,681,483,000,000 Combined total value = 1,735,860,000,000

Strike 131200 has a total call value of 55,584,000,000 versus a total put value of 1,657,617,000,000 Combined total value = 1,713,201,000,000

Strike 131300 has a total call value of 56,791,000,000 versus a total put value of 1,633,751,000,000 Combined total value = 1,690,542,000,000

Strike 131400 has a total call value of 57,998,000,000 versus a total put value of 1,609,885,000,000 Combined total value = 1,667,883,000,000

Strike 131500 has a total call value of 59,205,000,000 versus a total put value of 1,586,019,000,000 Combined total value = 1,645,224,000,000

Strike 131600 has a total call value of 60,412,000,000 versus a total put value of 1,562,153,000,000 Combined total value = 1,622,565,000,000

Strike 131700 has a total call value of 61,619,000,000 versus a total put value of 1,538,287,000,000 Combined total value = 1,599,906,000,000

Strike 131800 has a total call value of 62,827,000,000 versus a total put value of 1,514,421,000,000 Combined total value = 1,577,248,000,000

Strike 131900 has a total call value of 64,035,000,000 versus a total put value of 1,490,555,000,000 Combined total value = 1,554,590,000,000

Strike 132000 has a total call value of 65,243,000,000 versus a total put value of 1,466,689,000,000 Combined total value = 1,531,932,000,000

Strike 132100 has a total call value of 66,696,000,000 versus a total put value of 1,443,908,000,000 Combined total value = 1,510,604,000,000

Strike 132200 has a total call value of 68,149,000,000 versus a total put value of 1,421,127,000,000 Combined total value = 1,489,276,000,000

Strike 132300 has a total call value of 69,602,000,000 versus a total put value of 1,398,346,000,000 Combined total value = 1,467,948,000,000

Strike 132400 has a total call value of 71,055,000,000 versus a total put value of 1,375,565,000,000 Combined total value = 1,446,620,000,000

Strike 132500 has a total call value of 72,508,000,000 versus a total put value of 1,352,784,000,000 Combined total value = 1,425,292,000,000

Strike 132600 has a total call value of 73,961,000,000 versus a total put value of 1,330,008,000,000 Combined total value = 1,403,969,000,000

Strike 132700 has a total call value of 75,414,000,000 versus a total put value of 1,307,232,000,000 Combined total value = 1,382,646,000,000

Strike 132800 has a total call value of 76,867,000,000 versus a total put value of 1,284,456,000,000 Combined total value = 1,361,323,000,000

Strike 132900 has a total call value of 78,320,000,000 versus a total put value of 1,261,680,000,000 Combined total value = 1,340,000,000,000

Strike 133000 has a total call value of 79,773,000,000 versus a total put value of 1,238,904,000,000 Combined total value = 1,318,677,000,000

Strike 133100 has a total call value of 81,635,000,000 versus a total put value of 1,217,287,000,000 Combined total value = 1,298,922,000,000

Strike 133200 has a total call value of 83,497,000,000 versus a total put value of 1,195,670,000,000 Combined total value = 1,279,167,000,000

Strike 133300 has a total call value of 85,359,000,000 versus a total put value of 1,174,053,000,000 Combined total value = 1,259,412,000,000

Strike 133400 has a total call value of 87,221,000,000 versus a total put value of 1,152,436,000,000 Combined total value = 1,239,657,000,000

Strike 133500 has a total call value of 89,083,000,000 versus a total put value of 1,130,819,000,000 Combined total value = 1,219,902,000,000

Strike 133600 has a total call value of 90,945,000,000 versus a total put value of 1,109,202,000,000 Combined total value = 1,200,147,000,000

Strike 133700 has a total call value of 92,807,000,000 versus a total put value of 1,087,585,000,000 Combined total value = 1,180,392,000,000

Strike 133800 has a total call value of 94,669,000,000 versus a total put value of 1,065,968,000,000 Combined total value = 1,160,637,000,000

Strike 133900 has a total call value of 96,531,000,000 versus a total put value of 1,044,351,000,000 Combined total value = 1,140,882,000,000

Strike 134000 has a total call value of 98,393,000,000 versus a total put value of 1,022,734,000,000 Combined total value = 1,121,127,000,000

Strike 134100 has a total call value of 100,380,000,000 versus a total put value of 1,002,306,000,000 Combined total value = 1,102,686,000,000

Strike 134200 has a total call value of 102,367,000,000 versus a total put value of 981,878,000,000 Combined total value = 1,084,245,000,000

Strike 134300 has a total call value of 104,354,000,000 versus a total put value of 961,450,000,000 Combined total value = 1,065,804,000,000

Strike 134400 has a total call value of 106,341,000,000 versus a total put value of 941,022,000,000 Combined total value = 1,047,363,000,000

Strike 134500 has a total call value of 108,328,000,000 versus a total put value of 920,594,000,000 Combined total value = 1,028,922,000,000

Strike 134600 has a total call value of 110,315,000,000 versus a total put value of 900,187,000,000 Combined total value = 1,010,502,000,000

Strike 134700 has a total call value of 112,302,000,000 versus a total put value of 879,780,000,000 Combined total value = 992,082,000,000

Strike 134800 has a total call value of 114,289,000,000 versus a total put value of 859,373,000,000 Combined total value = 973,662,000,000

Strike 134900 has a total call value of 116,276,000,000 versus a total put value of 838,966,000,000 Combined total value = 955,242,000,000

Strike 135000 has a total call value of 118,263,000,000 versus a total put value of 818,559,000,000 Combined total value = 936,822,000,000

Strike 135100 has a total call value of 121,438,000,000 versus a total put value of 802,077,000,000 Combined total value = 923,515,000,000

Strike 135200 has a total call value of 124,613,000,000 versus a total put value of 785,595,000,000 Combined total value = 910,208,000,000

Strike 135300 has a total call value of 127,788,000,000 versus a total put value of 769,113,000,000 Combined total value = 896,901,000,000

Strike 135400 has a total call value of 130,963,000,000 versus a total put value of 752,631,000,000 Combined total value = 883,594,000,000

Strike 135500 has a total call value of 134,138,000,000 versus a total put value of 736,149,000,000 Combined total value = 870,287,000,000

Strike 135600 has a total call value of 137,333,000,000 versus a total put value of 719,796,000,000 Combined total value = 857,129,000,000

Strike 135700 has a total call value of 140,528,000,000 versus a total put value of 703,443,000,000 Combined total value = 843,971,000,000

Strike 135800 has a total call value of 143,723,000,000 versus a total put value of 687,095,000,000 Combined total value = 830,818,000,000

Strike 135900 has a total call value of 146,918,000,000 versus a total put value of 670,748,000,000 Combined total value = 817,666,000,000

Strike 136000 has a total call value of 150,122,000,000 versus a total put value of 654,401,000,000 Combined total value = 804,523,000,000

Strike 136100 has a total call value of 153,871,000,000 versus a total put value of 639,506,000,000 Combined total value = 793,377,000,000

Strike 136200 has a total call value of 157,628,000,000 versus a total put value of 624,611,000,000 Combined total value = 782,239,000,000

Strike 136300 has a total call value of 161,385,000,000 versus a total put value of 609,716,000,000 Combined total value = 771,101,000,000

Strike 136400 has a total call value of 165,142,000,000 versus a total put value of 594,821,000,000 Combined total value = 759,963,000,000

Strike 136500 has a total call value of 168,899,000,000 versus a total put value of 579,926,000,000 Combined total value = 748,825,000,000

Strike 136600 has a total call value of 172,656,000,000 versus a total put value of 565,170,000,000 Combined total value = 737,826,000,000

Strike 136700 has a total call value of 176,413,000,000 versus a total put value of 550,414,000,000 Combined total value = 726,827,000,000

Strike 136800 has a total call value of 180,170,000,000 versus a total put value of 535,658,000,000 Combined total value = 715,828,000,000

Strike 136900 has a total call value of 183,927,000,000 versus a total put value of 520,902,000,000 Combined total value = 704,829,000,000

Strike 137000 has a total call value of 187,684,000,000 versus a total put value of 506,146,000,000 Combined total value = 693,830,000,000

Strike 137100 has a total call value of 192,070,000,000 versus a total put value of 492,682,000,000 Combined total value = 684,752,000,000

Strike 137200 has a total call value of 196,456,000,000 versus a total put value of 479,218,000,000 Combined total value = 675,674,000,000

Strike 137300 has a total call value of 200,842,000,000 versus a total put value of 465,754,000,000 Combined total value = 666,596,000,000

Strike 137400 has a total call value of 205,228,000,000 versus a total put value of 452,290,000,000 Combined total value = 657,518,000,000

Strike 137500 has a total call value of 209,614,000,000 versus a total put value of 438,826,000,000 Combined total value = 648,440,000,000

Strike 137600 has a total call value of 214,056,000,000 versus a total put value of 425,511,000,000 Combined total value = 639,567,000,000

Strike 137700 has a total call value of 218,498,000,000 versus a total put value of 412,196,000,000 Combined total value = 630,694,000,000

Strike 137800 has a total call value of 222,940,000,000 versus a total put value of 398,881,000,000 Combined total value = 621,821,000,000

Strike 137900 has a total call value of 227,382,000,000 versus a total put value of 385,566,000,000 Combined total value = 612,948,000,000

Strike 138000 has a total call value of 231,824,000,000 versus a total put value of 372,251,000,000 Combined total value = 604,075,000,000

Strike 138100 has a total call value of 236,863,000,000 versus a total put value of 360,702,000,000 Combined total value = 597,565,000,000

Strike 138200 has a total call value of 241,902,000,000 versus a total put value of 349,153,000,000 Combined total value = 591,055,000,000

Strike 138300 has a total call value of 246,941,000,000 versus a total put value of 337,604,000,000 Combined total value = 584,545,000,000

Strike 138400 has a total call value of 251,980,000,000 versus a total put value of 326,055,000,000 Combined total value = 578,035,000,000

Strike 138500 has a total call value of 257,019,000,000 versus a total put value of 314,506,000,000 Combined total value = 571,525,000,000

Strike 138600 has a total call value of 262,126,000,000 versus a total put value of 303,075,000,000 Combined total value = 565,201,000,000

Strike 138700 has a total call value of 267,233,000,000 versus a total put value of 291,644,000,000 Combined total value = 558,877,000,000

Strike 138800 has a total call value of 272,340,000,000 versus a total put value of 280,213,000,000 Combined total value = 552,553,000,000

Strike 138900 has a total call value of 277,447,000,000 versus a total put value of 268,782,000,000 Combined total value = 546,229,000,000

Strike 139000 has a total call value of 282,554,000,000 versus a total put value of 257,351,000,000 Combined total value = 539,905,000,000

Strike 139100 has a total call value of 288,273,000,000 versus a total put value of 247,095,000,000 Combined total value = 535,368,000,000

Strike 139200 has a total call value of 293,992,000,000 versus a total put value of 236,839,000,000 Combined total value = 530,831,000,000

Strike 139300 has a total call value of 299,711,000,000 versus a total put value of 226,583,000,000 Combined total value = 526,294,000,000

Strike 139400 has a total call value of 305,430,000,000 versus a total put value of 216,327,000,000 Combined total value = 521,757,000,000

Strike 139500 has a total call value of 311,149,000,000 versus a total put value of 206,071,000,000 Combined total value = 517,220,000,000

Strike 139600 has a total call value of 316,925,000,000 versus a total put value of 195,835,000,000 Combined total value = 512,760,000,000

Strike 139700 has a total call value of 322,701,000,000 versus a total put value of 185,599,000,000 Combined total value = 508,300,000,000

Strike 139800 has a total call value of 328,477,000,000 versus a total put value of 175,363,000,000 Combined total value = 503,840,000,000

Strike 139900 has a total call value of 334,253,000,000 versus a total put value of 165,127,000,000 Combined total value = 499,380,000,000

Strike 140000 has a total call value of 340,029,000,000 versus a total put value of 154,891,000,000 Combined total value = 494,920,000,000

Strike 140100 has a total call value of 348,068,000,000 versus a total put value of 147,411,000,000 Combined total value = 495,479,000,000

Strike 140200 has a total call value of 356,107,000,000 versus a total put value of 139,931,000,000 Combined total value = 496,038,000,000

Strike 140300 has a total call value of 364,146,000,000 versus a total put value of 132,451,000,000 Combined total value = 496,597,000,000

Strike 140400 has a total call value of 372,185,000,000 versus a total put value of 124,971,000,000 Combined total value = 497,156,000,000

Strike 140500 has a total call value of 380,224,000,000 versus a total put value of 117,491,000,000 Combined total value = 497,715,000,000

Strike 140600 has a total call value of 388,280,000,000 versus a total put value of 110,104,000,000 Combined total value = 498,384,000,000

Strike 140700 has a total call value of 396,336,000,000 versus a total put value of 102,717,000,000 Combined total value = 499,053,000,000

Strike 140800 has a total call value of 404,392,000,000 versus a total put value of 95,330,000,000 Combined total value = 499,722,000,000

Strike 140900 has a total call value of 412,448,000,000 versus a total put value of 87,943,000,000 Combined total value = 500,391,000,000

Strike 141000 has a total call value of 420,504,000,000 versus a total put value of 80,556,000,000 Combined total value = 501,060,000,000

Strike 141100 has a total call value of 429,933,000,000 versus a total put value of 75,905,000,000 Combined total value = 505,838,000,000

Strike 141200 has a total call value of 439,362,000,000 versus a total put value of 71,254,000,000 Combined total value = 510,616,000,000

Strike 141300 has a total call value of 448,791,000,000 versus a total put value of 66,603,000,000 Combined total value = 515,394,000,000

Strike 141400 has a total call value of 458,220,000,000 versus a total put value of 61,952,000,000 Combined total value = 520,172,000,000

Strike 141500 has a total call value of 467,654,000,000 versus a total put value of 57,301,000,000 Combined total value = 524,955,000,000

Strike 141600 has a total call value of 477,285,000,000 versus a total put value of 52,907,000,000 Combined total value = 530,192,000,000

Strike 141700 has a total call value of 486,919,000,000 versus a total put value of 48,513,000,000 Combined total value = 535,432,000,000

Strike 141800 has a total call value of 496,555,000,000 versus a total put value of 44,119,000,000 Combined total value = 540,674,000,000

Strike 141900 has a total call value of 506,191,000,000 versus a total put value of 39,725,000,000 Combined total value = 545,916,000,000

Strike 142000 has a total call value of 515,828,000,000 versus a total put value of 35,331,000,000 Combined total value = 551,159,000,000

Strike 142100 has a total call value of 529,844,000,000 versus a total put value of 32,883,000,000 Combined total value = 562,727,000,000

Strike 142200 has a total call value of 543,865,000,000 versus a total put value of 30,435,000,000 Combined total value = 574,300,000,000

Strike 142300 has a total call value of 557,888,000,000 versus a total put value of 27,987,000,000 Combined total value = 585,875,000,000

Strike 142400 has a total call value of 571,911,000,000 versus a total put value of 25,539,000,000 Combined total value = 597,450,000,000

Strike 142500 has a total call value of 585,934,000,000 versus a total put value of 23,091,000,000 Combined total value = 609,025,000,000

Strike 142600 has a total call value of 600,178,000,000 versus a total put value of 20,796,000,000 Combined total value = 620,974,000,000

Strike 142700 has a total call value of 614,424,000,000 versus a total put value of 18,511,000,000 Combined total value = 632,935,000,000

Strike 142800 has a total call value of 628,671,000,000 versus a total put value of 16,227,000,000 Combined total value = 644,898,000,000

Strike 142900 has a total call value of 642,929,000,000 versus a total put value of 13,947,000,000 Combined total value = 656,876,000,000

Strike 143000 has a total call value of 657,187,000,000 versus a total put value of 11,668,000,000 Combined total value = 668,855,000,000

Strike 143100 has a total call value of 675,057,000,000 versus a total put value of 10,944,000,000 Combined total value = 686,001,000,000

Strike 143200 has a total call value of 692,931,000,000 versus a total put value of 10,221,000,000 Combined total value = 703,152,000,000

Strike 143300 has a total call value of 710,806,000,000 versus a total put value of 9,499,000,000 Combined total value = 720,305,000,000

Strike 143400 has a total call value of 728,682,000,000 versus a total put value of 8,777,000,000 Combined total value = 737,459,000,000

Strike 143500 has a total call value of 746,558,000,000 versus a total put value of 8,055,000,000 Combined total value = 754,613,000,000

Strike 143600 has a total call value of 764,685,000,000 versus a total put value of 7,342,000,000 Combined total value = 772,027,000,000

Strike 143700 has a total call value of 782,812,000,000 versus a total put value of 6,629,000,000 Combined total value = 789,441,000,000

Strike 143800 has a total call value of 800,939,000,000 versus a total put value of 5,916,000,000 Combined total value = 806,855,000,000

Strike 143900 has a total call value of 819,067,000,000 versus a total put value of 5,203,000,000 Combined total value = 824,270,000,000

Strike 144000 has a total call value of 837,196,000,000 versus a total put value of 4,490,000,000 Combined total value = 841,686,000,000

Strike 144100 has a total call value of 859,959,000,000 versus a total put value of 4,082,000,000 Combined total value = 864,041,000,000

Strike 144200 has a total call value of 882,722,000,000 versus a total put value of 3,674,000,000 Combined total value = 886,396,000,000

Strike 144300 has a total call value of 905,485,000,000 versus a total put value of 3,266,000,000 Combined total value = 908,751,000,000

Strike 144400 has a total call value of 928,248,000,000 versus a total put value of 2,858,000,000 Combined total value = 931,106,000,000

Strike 144500 has a total call value of 951,017,000,000 versus a total put value of 2,450,000,000 Combined total value = 953,467,000,000

Strike 144600 has a total call value of 974,098,000,000 versus a total put value of 2,042,000,000 Combined total value = 976,140,000,000

Strike 144700 has a total call value of 997,179,000,000 versus a total put value of 1,634,000,000 Combined total value = 998,813,000,000

Strike 144800 has a total call value of 1,020,260,000,000 versus a total put value of 1,226,000,000 Combined total value = 1,021,486,000,000

Strike 144900 has a total call value of 1,043,347,000,000 versus a total put value of 818,000,000 Combined total value = 1,044,165,000,000

Strike 145000 has a total call value of 1,067,284,000,000 versus a total put value of 410,000,000 Combined total value = 1,067,694,000,000

Strike 145100 has a total call value of 1,093,690,000,000 versus a total put value of 369,000,000 Combined total value = 1,094,059,000,000

Strike 145200 has a total call value of 1,120,096,000,000 versus a total put value of 328,000,000 Combined total value = 1,120,424,000,000

Strike 145300 has a total call value of 1,146,502,000,000 versus a total put value of 287,000,000 Combined total value = 1,146,789,000,000

Strike 145400 has a total call value of 1,172,908,000,000 versus a total put value of 246,000,000 Combined total value = 1,173,154,000,000

Strike 145500 has a total call value of 1,199,314,000,000 versus a total put value of 205,000,000 Combined total value = 1,199,519,000,000

Strike 145600 has a total call value of 1,225,720,000,000 versus a total put value of 164,000,000 Combined total value = 1,225,884,000,000

Strike 145700 has a total call value of 1,252,126,000,000 versus a total put value of 123,000,000 Combined total value = 1,252,249,000,000

Strike 145800 has a total call value of 1,278,532,000,000 versus a total put value of 82,000,000 Combined total value = 1,278,614,000,000

Strike 145900 has a total call value of 1,304,938,000,000 versus a total put value of 41,000,000 Combined total value = 1,304,979,000,000

Strike 146000 has a total call value of 1,331,344,000,000 versus a total put value of 0 Combined total value = 1,331,344,000,000

Strike 146100 has a total call value of 1,359,434,000,000 versus a total put value of 0 Combined total value = 1,359,434,000,000

Strike 146200 has a total call value of 1,387,524,000,000 versus a total put value of 0 Combined total value = 1,387,524,000,000

Strike 146300 has a total call value of 1,415,614,000,000 versus a total put value of 0 Combined total value = 1,415,614,000,000

Strike 146400 has a total call value of 1,443,704,000,000 versus a total put value of 0 Combined total value = 1,443,704,000,000

Strike 146500 has a total call value of 1,471,794,000,000 versus a total put value of 0 Combined total value = 1,471,794,000,000

Strike 146600 has a total call value of 1,500,603,000,000 versus a total put value of 0 Combined total value = 1,500,603,000,000

Strike 146700 has a total call value of 1,529,412,000,000 versus a total put value of 0 Combined total value = 1,529,412,000,000

Strike 146800 has a total call value of 1,558,238,000,000 versus a total put value of 0 Combined total value = 1,558,238,000,000

Strike 146900 has a total call value of 1,587,064,000,000 versus a total put value of 0 Combined total value = 1,587,064,000,000

Max-Pain Table for Commodity

Stock Max-Pain Index Max-Pain

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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