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

142281 -569.00 (-0.40%)

L: 141184 H: 142950

Max Pain - GOLDM

16 Jan 2026 11:58 PM IST

Market Closed

Expiry

Max-Pain

1,41,000

DFC

7D Avg

Reliability

14D Avg

Reliability

21D Avg

Reliability

Max Pain for GOLDM is 141000

Historical data for GOLDM-141000-CE

LTP (141000 CE)

2973.5 -42.5

Open Interest

949 105

Historical data for GOLDM-141000-PE

LTP (141000 PE)

1666 -49

Open Interest

1543 -1131

Strike 117000 has a total call value of 0 versus a total put value of 6,384,905,000,000 Combined total value = 6,384,905,000,000

Strike 117100 has a total call value of 0 versus a total put value of 6,348,812,000,000 Combined total value = 6,348,812,000,000

Strike 117200 has a total call value of 0 versus a total put value of 6,312,719,000,000 Combined total value = 6,312,719,000,000

Strike 117300 has a total call value of 0 versus a total put value of 6,276,626,000,000 Combined total value = 6,276,626,000,000

Strike 117400 has a total call value of 0 versus a total put value of 6,240,533,000,000 Combined total value = 6,240,533,000,000

Strike 117500 has a total call value of 0 versus a total put value of 6,204,440,000,000 Combined total value = 6,204,440,000,000

Strike 117600 has a total call value of 0 versus a total put value of 6,168,347,000,000 Combined total value = 6,168,347,000,000

Strike 117700 has a total call value of 0 versus a total put value of 6,132,254,000,000 Combined total value = 6,132,254,000,000

Strike 117800 has a total call value of 0 versus a total put value of 6,096,161,000,000 Combined total value = 6,096,161,000,000

Strike 117900 has a total call value of 0 versus a total put value of 6,060,068,000,000 Combined total value = 6,060,068,000,000

Strike 118000 has a total call value of 0 versus a total put value of 6,023,975,000,000 Combined total value = 6,023,975,000,000

Strike 118100 has a total call value of 0 versus a total put value of 5,987,882,000,000 Combined total value = 5,987,882,000,000

Strike 118200 has a total call value of 0 versus a total put value of 5,951,789,000,000 Combined total value = 5,951,789,000,000

Strike 118300 has a total call value of 0 versus a total put value of 5,915,696,000,000 Combined total value = 5,915,696,000,000

Strike 118400 has a total call value of 0 versus a total put value of 5,879,603,000,000 Combined total value = 5,879,603,000,000

Strike 118500 has a total call value of 0 versus a total put value of 5,843,510,000,000 Combined total value = 5,843,510,000,000

Strike 118600 has a total call value of 0 versus a total put value of 5,807,417,000,000 Combined total value = 5,807,417,000,000

Strike 118700 has a total call value of 0 versus a total put value of 5,771,324,000,000 Combined total value = 5,771,324,000,000

Strike 118800 has a total call value of 0 versus a total put value of 5,735,231,000,000 Combined total value = 5,735,231,000,000

Strike 118900 has a total call value of 0 versus a total put value of 5,699,138,000,000 Combined total value = 5,699,138,000,000

Strike 119000 has a total call value of 0 versus a total put value of 5,663,045,000,000 Combined total value = 5,663,045,000,000

Strike 119100 has a total call value of 0 versus a total put value of 5,626,952,000,000 Combined total value = 5,626,952,000,000

Strike 119200 has a total call value of 0 versus a total put value of 5,590,859,000,000 Combined total value = 5,590,859,000,000

Strike 119300 has a total call value of 0 versus a total put value of 5,554,766,000,000 Combined total value = 5,554,766,000,000

Strike 119400 has a total call value of 0 versus a total put value of 5,518,673,000,000 Combined total value = 5,518,673,000,000

Strike 119500 has a total call value of 0 versus a total put value of 5,482,580,000,000 Combined total value = 5,482,580,000,000

Strike 119600 has a total call value of 0 versus a total put value of 5,446,487,000,000 Combined total value = 5,446,487,000,000

Strike 119700 has a total call value of 0 versus a total put value of 5,410,394,000,000 Combined total value = 5,410,394,000,000

Strike 119800 has a total call value of 0 versus a total put value of 5,374,301,000,000 Combined total value = 5,374,301,000,000

Strike 119900 has a total call value of 0 versus a total put value of 5,338,208,000,000 Combined total value = 5,338,208,000,000

Strike 120000 has a total call value of 0 versus a total put value of 5,302,115,000,000 Combined total value = 5,302,115,000,000

Strike 120100 has a total call value of 0 versus a total put value of 5,267,360,000,000 Combined total value = 5,267,360,000,000

Strike 120200 has a total call value of 0 versus a total put value of 5,232,605,000,000 Combined total value = 5,232,605,000,000

Strike 120300 has a total call value of 0 versus a total put value of 5,197,850,000,000 Combined total value = 5,197,850,000,000

Strike 120400 has a total call value of 0 versus a total put value of 5,163,095,000,000 Combined total value = 5,163,095,000,000

Strike 120500 has a total call value of 0 versus a total put value of 5,128,340,000,000 Combined total value = 5,128,340,000,000

Strike 120600 has a total call value of 0 versus a total put value of 5,093,585,000,000 Combined total value = 5,093,585,000,000

Strike 120700 has a total call value of 0 versus a total put value of 5,058,830,000,000 Combined total value = 5,058,830,000,000

Strike 120800 has a total call value of 0 versus a total put value of 5,024,075,000,000 Combined total value = 5,024,075,000,000

Strike 120900 has a total call value of 0 versus a total put value of 4,989,320,000,000 Combined total value = 4,989,320,000,000

Strike 121000 has a total call value of 0 versus a total put value of 4,954,565,000,000 Combined total value = 4,954,565,000,000

Strike 121100 has a total call value of 0 versus a total put value of 4,919,820,000,000 Combined total value = 4,919,820,000,000

Strike 121200 has a total call value of 0 versus a total put value of 4,885,075,000,000 Combined total value = 4,885,075,000,000

Strike 121300 has a total call value of 0 versus a total put value of 4,850,330,000,000 Combined total value = 4,850,330,000,000

Strike 121400 has a total call value of 0 versus a total put value of 4,815,585,000,000 Combined total value = 4,815,585,000,000

Strike 121500 has a total call value of 0 versus a total put value of 4,780,840,000,000 Combined total value = 4,780,840,000,000

Strike 121600 has a total call value of 0 versus a total put value of 4,746,095,000,000 Combined total value = 4,746,095,000,000

Strike 121700 has a total call value of 0 versus a total put value of 4,711,350,000,000 Combined total value = 4,711,350,000,000

Strike 121800 has a total call value of 0 versus a total put value of 4,676,605,000,000 Combined total value = 4,676,605,000,000

Strike 121900 has a total call value of 0 versus a total put value of 4,641,860,000,000 Combined total value = 4,641,860,000,000

Strike 122000 has a total call value of 0 versus a total put value of 4,607,115,000,000 Combined total value = 4,607,115,000,000

Strike 122100 has a total call value of 0 versus a total put value of 4,572,370,000,000 Combined total value = 4,572,370,000,000

Strike 122200 has a total call value of 0 versus a total put value of 4,537,625,000,000 Combined total value = 4,537,625,000,000

Strike 122300 has a total call value of 0 versus a total put value of 4,502,880,000,000 Combined total value = 4,502,880,000,000

Strike 122400 has a total call value of 0 versus a total put value of 4,468,135,000,000 Combined total value = 4,468,135,000,000

Strike 122500 has a total call value of 0 versus a total put value of 4,433,390,000,000 Combined total value = 4,433,390,000,000

Strike 122600 has a total call value of 0 versus a total put value of 4,398,645,000,000 Combined total value = 4,398,645,000,000

Strike 122700 has a total call value of 0 versus a total put value of 4,363,900,000,000 Combined total value = 4,363,900,000,000

Strike 122800 has a total call value of 0 versus a total put value of 4,329,155,000,000 Combined total value = 4,329,155,000,000

Strike 122900 has a total call value of 0 versus a total put value of 4,294,410,000,000 Combined total value = 4,294,410,000,000

Strike 123000 has a total call value of 0 versus a total put value of 4,259,665,000,000 Combined total value = 4,259,665,000,000

Strike 123100 has a total call value of 0 versus a total put value of 4,224,920,000,000 Combined total value = 4,224,920,000,000

Strike 123200 has a total call value of 0 versus a total put value of 4,190,175,000,000 Combined total value = 4,190,175,000,000

Strike 123300 has a total call value of 0 versus a total put value of 4,155,430,000,000 Combined total value = 4,155,430,000,000

Strike 123400 has a total call value of 0 versus a total put value of 4,120,685,000,000 Combined total value = 4,120,685,000,000

Strike 123500 has a total call value of 0 versus a total put value of 4,085,940,000,000 Combined total value = 4,085,940,000,000

Strike 123600 has a total call value of 0 versus a total put value of 4,051,195,000,000 Combined total value = 4,051,195,000,000

Strike 123700 has a total call value of 0 versus a total put value of 4,016,450,000,000 Combined total value = 4,016,450,000,000

Strike 123800 has a total call value of 0 versus a total put value of 3,981,705,000,000 Combined total value = 3,981,705,000,000

Strike 123900 has a total call value of 0 versus a total put value of 3,946,960,000,000 Combined total value = 3,946,960,000,000

Strike 124000 has a total call value of 0 versus a total put value of 3,912,215,000,000 Combined total value = 3,912,215,000,000

Strike 124100 has a total call value of 0 versus a total put value of 3,877,631,000,000 Combined total value = 3,877,631,000,000

Strike 124200 has a total call value of 0 versus a total put value of 3,843,047,000,000 Combined total value = 3,843,047,000,000

Strike 124300 has a total call value of 0 versus a total put value of 3,808,463,000,000 Combined total value = 3,808,463,000,000

Strike 124400 has a total call value of 0 versus a total put value of 3,773,879,000,000 Combined total value = 3,773,879,000,000

Strike 124500 has a total call value of 0 versus a total put value of 3,739,295,000,000 Combined total value = 3,739,295,000,000

Strike 124600 has a total call value of 0 versus a total put value of 3,704,711,000,000 Combined total value = 3,704,711,000,000

Strike 124700 has a total call value of 0 versus a total put value of 3,670,127,000,000 Combined total value = 3,670,127,000,000

Strike 124800 has a total call value of 0 versus a total put value of 3,635,543,000,000 Combined total value = 3,635,543,000,000

Strike 124900 has a total call value of 0 versus a total put value of 3,600,959,000,000 Combined total value = 3,600,959,000,000

Strike 125000 has a total call value of 0 versus a total put value of 3,566,375,000,000 Combined total value = 3,566,375,000,000

Strike 125100 has a total call value of 815,000,000 versus a total put value of 3,535,388,000,000 Combined total value = 3,536,203,000,000

Strike 125200 has a total call value of 1,630,000,000 versus a total put value of 3,504,401,000,000 Combined total value = 3,506,031,000,000

Strike 125300 has a total call value of 2,445,000,000 versus a total put value of 3,473,414,000,000 Combined total value = 3,475,859,000,000

Strike 125400 has a total call value of 3,260,000,000 versus a total put value of 3,442,427,000,000 Combined total value = 3,445,687,000,000

Strike 125500 has a total call value of 4,075,000,000 versus a total put value of 3,411,440,000,000 Combined total value = 3,415,515,000,000

Strike 125600 has a total call value of 4,890,000,000 versus a total put value of 3,380,453,000,000 Combined total value = 3,385,343,000,000

Strike 125700 has a total call value of 5,705,000,000 versus a total put value of 3,349,466,000,000 Combined total value = 3,355,171,000,000

Strike 125800 has a total call value of 6,520,000,000 versus a total put value of 3,318,479,000,000 Combined total value = 3,324,999,000,000

Strike 125900 has a total call value of 7,335,000,000 versus a total put value of 3,287,492,000,000 Combined total value = 3,294,827,000,000

Strike 126000 has a total call value of 8,150,000,000 versus a total put value of 3,256,505,000,000 Combined total value = 3,264,655,000,000

Strike 126100 has a total call value of 8,965,000,000 versus a total put value of 3,225,829,000,000 Combined total value = 3,234,794,000,000

Strike 126200 has a total call value of 9,780,000,000 versus a total put value of 3,195,153,000,000 Combined total value = 3,204,933,000,000

Strike 126300 has a total call value of 10,595,000,000 versus a total put value of 3,164,477,000,000 Combined total value = 3,175,072,000,000

Strike 126400 has a total call value of 11,410,000,000 versus a total put value of 3,133,801,000,000 Combined total value = 3,145,211,000,000

Strike 126500 has a total call value of 12,225,000,000 versus a total put value of 3,103,125,000,000 Combined total value = 3,115,350,000,000

Strike 126600 has a total call value of 13,040,000,000 versus a total put value of 3,072,449,000,000 Combined total value = 3,085,489,000,000

Strike 126700 has a total call value of 13,855,000,000 versus a total put value of 3,041,773,000,000 Combined total value = 3,055,628,000,000

Strike 126800 has a total call value of 14,670,000,000 versus a total put value of 3,011,097,000,000 Combined total value = 3,025,767,000,000

Strike 126900 has a total call value of 15,485,000,000 versus a total put value of 2,980,421,000,000 Combined total value = 2,995,906,000,000

Strike 127000 has a total call value of 16,300,000,000 versus a total put value of 2,949,745,000,000 Combined total value = 2,966,045,000,000

Strike 127100 has a total call value of 17,115,000,000 versus a total put value of 2,919,486,000,000 Combined total value = 2,936,601,000,000

Strike 127200 has a total call value of 17,930,000,000 versus a total put value of 2,889,227,000,000 Combined total value = 2,907,157,000,000

Strike 127300 has a total call value of 18,745,000,000 versus a total put value of 2,858,968,000,000 Combined total value = 2,877,713,000,000

Strike 127400 has a total call value of 19,560,000,000 versus a total put value of 2,828,709,000,000 Combined total value = 2,848,269,000,000

Strike 127500 has a total call value of 20,375,000,000 versus a total put value of 2,798,450,000,000 Combined total value = 2,818,825,000,000

Strike 127600 has a total call value of 21,190,000,000 versus a total put value of 2,768,191,000,000 Combined total value = 2,789,381,000,000

Strike 127700 has a total call value of 22,005,000,000 versus a total put value of 2,737,932,000,000 Combined total value = 2,759,937,000,000

Strike 127800 has a total call value of 22,820,000,000 versus a total put value of 2,707,673,000,000 Combined total value = 2,730,493,000,000

Strike 127900 has a total call value of 23,635,000,000 versus a total put value of 2,677,414,000,000 Combined total value = 2,701,049,000,000

Strike 128000 has a total call value of 24,450,000,000 versus a total put value of 2,647,155,000,000 Combined total value = 2,671,605,000,000

Strike 128100 has a total call value of 25,265,000,000 versus a total put value of 2,617,612,000,000 Combined total value = 2,642,877,000,000

Strike 128200 has a total call value of 26,080,000,000 versus a total put value of 2,588,069,000,000 Combined total value = 2,614,149,000,000

Strike 128300 has a total call value of 26,895,000,000 versus a total put value of 2,558,526,000,000 Combined total value = 2,585,421,000,000

Strike 128400 has a total call value of 27,710,000,000 versus a total put value of 2,528,983,000,000 Combined total value = 2,556,693,000,000

Strike 128500 has a total call value of 28,525,000,000 versus a total put value of 2,499,440,000,000 Combined total value = 2,527,965,000,000

Strike 128600 has a total call value of 29,340,000,000 versus a total put value of 2,469,897,000,000 Combined total value = 2,499,237,000,000

Strike 128700 has a total call value of 30,155,000,000 versus a total put value of 2,440,354,000,000 Combined total value = 2,470,509,000,000

Strike 128800 has a total call value of 30,970,000,000 versus a total put value of 2,410,811,000,000 Combined total value = 2,441,781,000,000

Strike 128900 has a total call value of 31,785,000,000 versus a total put value of 2,381,268,000,000 Combined total value = 2,413,053,000,000

Strike 129000 has a total call value of 32,600,000,000 versus a total put value of 2,351,725,000,000 Combined total value = 2,384,325,000,000

Strike 129100 has a total call value of 33,415,000,000 versus a total put value of 2,322,866,000,000 Combined total value = 2,356,281,000,000

Strike 129200 has a total call value of 34,230,000,000 versus a total put value of 2,294,007,000,000 Combined total value = 2,328,237,000,000

Strike 129300 has a total call value of 35,045,000,000 versus a total put value of 2,265,148,000,000 Combined total value = 2,300,193,000,000

Strike 129400 has a total call value of 35,860,000,000 versus a total put value of 2,236,289,000,000 Combined total value = 2,272,149,000,000

Strike 129500 has a total call value of 36,675,000,000 versus a total put value of 2,207,430,000,000 Combined total value = 2,244,105,000,000

Strike 129600 has a total call value of 37,490,000,000 versus a total put value of 2,178,571,000,000 Combined total value = 2,216,061,000,000

Strike 129700 has a total call value of 38,305,000,000 versus a total put value of 2,149,712,000,000 Combined total value = 2,188,017,000,000

Strike 129800 has a total call value of 39,120,000,000 versus a total put value of 2,120,853,000,000 Combined total value = 2,159,973,000,000

Strike 129900 has a total call value of 39,935,000,000 versus a total put value of 2,091,994,000,000 Combined total value = 2,131,929,000,000

Strike 130000 has a total call value of 40,750,000,000 versus a total put value of 2,063,135,000,000 Combined total value = 2,103,885,000,000

Strike 130100 has a total call value of 41,944,000,000 versus a total put value of 2,037,609,000,000 Combined total value = 2,079,553,000,000

Strike 130200 has a total call value of 43,138,000,000 versus a total put value of 2,012,083,000,000 Combined total value = 2,055,221,000,000

Strike 130300 has a total call value of 44,332,000,000 versus a total put value of 1,986,557,000,000 Combined total value = 2,030,889,000,000

Strike 130400 has a total call value of 45,526,000,000 versus a total put value of 1,961,031,000,000 Combined total value = 2,006,557,000,000

Strike 130500 has a total call value of 46,720,000,000 versus a total put value of 1,935,505,000,000 Combined total value = 1,982,225,000,000

Strike 130600 has a total call value of 47,914,000,000 versus a total put value of 1,909,979,000,000 Combined total value = 1,957,893,000,000

Strike 130700 has a total call value of 49,108,000,000 versus a total put value of 1,884,453,000,000 Combined total value = 1,933,561,000,000

Strike 130800 has a total call value of 50,302,000,000 versus a total put value of 1,858,927,000,000 Combined total value = 1,909,229,000,000

Strike 130900 has a total call value of 51,496,000,000 versus a total put value of 1,833,401,000,000 Combined total value = 1,884,897,000,000

Strike 131000 has a total call value of 52,690,000,000 versus a total put value of 1,807,875,000,000 Combined total value = 1,860,565,000,000

Strike 131100 has a total call value of 53,884,000,000 versus a total put value of 1,783,157,000,000 Combined total value = 1,837,041,000,000

Strike 131200 has a total call value of 55,078,000,000 versus a total put value of 1,758,439,000,000 Combined total value = 1,813,517,000,000

Strike 131300 has a total call value of 56,272,000,000 versus a total put value of 1,733,721,000,000 Combined total value = 1,789,993,000,000

Strike 131400 has a total call value of 57,466,000,000 versus a total put value of 1,709,003,000,000 Combined total value = 1,766,469,000,000

Strike 131500 has a total call value of 58,660,000,000 versus a total put value of 1,684,285,000,000 Combined total value = 1,742,945,000,000

Strike 131600 has a total call value of 59,854,000,000 versus a total put value of 1,659,567,000,000 Combined total value = 1,719,421,000,000

Strike 131700 has a total call value of 61,048,000,000 versus a total put value of 1,634,849,000,000 Combined total value = 1,695,897,000,000

Strike 131800 has a total call value of 62,242,000,000 versus a total put value of 1,610,131,000,000 Combined total value = 1,672,373,000,000

Strike 131900 has a total call value of 63,436,000,000 versus a total put value of 1,585,413,000,000 Combined total value = 1,648,849,000,000

Strike 132000 has a total call value of 64,630,000,000 versus a total put value of 1,560,695,000,000 Combined total value = 1,625,325,000,000

Strike 132100 has a total call value of 66,058,000,000 versus a total put value of 1,537,210,000,000 Combined total value = 1,603,268,000,000

Strike 132200 has a total call value of 67,486,000,000 versus a total put value of 1,513,725,000,000 Combined total value = 1,581,211,000,000

Strike 132300 has a total call value of 68,914,000,000 versus a total put value of 1,490,240,000,000 Combined total value = 1,559,154,000,000

Strike 132400 has a total call value of 70,342,000,000 versus a total put value of 1,466,755,000,000 Combined total value = 1,537,097,000,000

Strike 132500 has a total call value of 71,770,000,000 versus a total put value of 1,443,270,000,000 Combined total value = 1,515,040,000,000

Strike 132600 has a total call value of 73,198,000,000 versus a total put value of 1,419,791,000,000 Combined total value = 1,492,989,000,000

Strike 132700 has a total call value of 74,626,000,000 versus a total put value of 1,396,312,000,000 Combined total value = 1,470,938,000,000

Strike 132800 has a total call value of 76,054,000,000 versus a total put value of 1,372,833,000,000 Combined total value = 1,448,887,000,000

Strike 132900 has a total call value of 77,482,000,000 versus a total put value of 1,349,354,000,000 Combined total value = 1,426,836,000,000

Strike 133000 has a total call value of 78,910,000,000 versus a total put value of 1,325,875,000,000 Combined total value = 1,404,785,000,000

Strike 133100 has a total call value of 80,735,000,000 versus a total put value of 1,303,770,000,000 Combined total value = 1,384,505,000,000

Strike 133200 has a total call value of 82,560,000,000 versus a total put value of 1,281,665,000,000 Combined total value = 1,364,225,000,000

Strike 133300 has a total call value of 84,385,000,000 versus a total put value of 1,259,560,000,000 Combined total value = 1,343,945,000,000

Strike 133400 has a total call value of 86,210,000,000 versus a total put value of 1,237,455,000,000 Combined total value = 1,323,665,000,000

Strike 133500 has a total call value of 88,035,000,000 versus a total put value of 1,215,350,000,000 Combined total value = 1,303,385,000,000

Strike 133600 has a total call value of 89,860,000,000 versus a total put value of 1,193,245,000,000 Combined total value = 1,283,105,000,000

Strike 133700 has a total call value of 91,685,000,000 versus a total put value of 1,171,140,000,000 Combined total value = 1,262,825,000,000

Strike 133800 has a total call value of 93,510,000,000 versus a total put value of 1,149,035,000,000 Combined total value = 1,242,545,000,000

Strike 133900 has a total call value of 95,335,000,000 versus a total put value of 1,126,930,000,000 Combined total value = 1,222,265,000,000

Strike 134000 has a total call value of 97,160,000,000 versus a total put value of 1,104,825,000,000 Combined total value = 1,201,985,000,000

Strike 134100 has a total call value of 99,102,000,000 versus a total put value of 1,083,827,000,000 Combined total value = 1,182,929,000,000

Strike 134200 has a total call value of 101,044,000,000 versus a total put value of 1,062,829,000,000 Combined total value = 1,163,873,000,000

Strike 134300 has a total call value of 102,986,000,000 versus a total put value of 1,041,831,000,000 Combined total value = 1,144,817,000,000

Strike 134400 has a total call value of 104,928,000,000 versus a total put value of 1,020,833,000,000 Combined total value = 1,125,761,000,000

Strike 134500 has a total call value of 106,870,000,000 versus a total put value of 999,835,000,000 Combined total value = 1,106,705,000,000

Strike 134600 has a total call value of 108,812,000,000 versus a total put value of 978,837,000,000 Combined total value = 1,087,649,000,000

Strike 134700 has a total call value of 110,754,000,000 versus a total put value of 957,839,000,000 Combined total value = 1,068,593,000,000

Strike 134800 has a total call value of 112,696,000,000 versus a total put value of 936,841,000,000 Combined total value = 1,049,537,000,000

Strike 134900 has a total call value of 114,638,000,000 versus a total put value of 915,843,000,000 Combined total value = 1,030,481,000,000

Strike 135000 has a total call value of 116,580,000,000 versus a total put value of 894,845,000,000 Combined total value = 1,011,425,000,000

Strike 135100 has a total call value of 119,656,000,000 versus a total put value of 877,918,000,000 Combined total value = 997,574,000,000

Strike 135200 has a total call value of 122,732,000,000 versus a total put value of 860,993,000,000 Combined total value = 983,725,000,000

Strike 135300 has a total call value of 125,811,000,000 versus a total put value of 844,068,000,000 Combined total value = 969,879,000,000

Strike 135400 has a total call value of 128,890,000,000 versus a total put value of 827,143,000,000 Combined total value = 956,033,000,000

Strike 135500 has a total call value of 131,969,000,000 versus a total put value of 810,218,000,000 Combined total value = 942,187,000,000

Strike 135600 has a total call value of 135,048,000,000 versus a total put value of 793,401,000,000 Combined total value = 928,449,000,000

Strike 135700 has a total call value of 138,127,000,000 versus a total put value of 776,584,000,000 Combined total value = 914,711,000,000

Strike 135800 has a total call value of 141,206,000,000 versus a total put value of 759,767,000,000 Combined total value = 900,973,000,000

Strike 135900 has a total call value of 144,294,000,000 versus a total put value of 742,950,000,000 Combined total value = 887,244,000,000

Strike 136000 has a total call value of 147,387,000,000 versus a total put value of 726,133,000,000 Combined total value = 873,520,000,000

Strike 136100 has a total call value of 150,936,000,000 versus a total put value of 710,687,000,000 Combined total value = 861,623,000,000

Strike 136200 has a total call value of 154,485,000,000 versus a total put value of 695,241,000,000 Combined total value = 849,726,000,000

Strike 136300 has a total call value of 158,039,000,000 versus a total put value of 679,795,000,000 Combined total value = 837,834,000,000

Strike 136400 has a total call value of 161,593,000,000 versus a total put value of 664,349,000,000 Combined total value = 825,942,000,000

Strike 136500 has a total call value of 165,147,000,000 versus a total put value of 648,903,000,000 Combined total value = 814,050,000,000

Strike 136600 has a total call value of 168,754,000,000 versus a total put value of 633,599,000,000 Combined total value = 802,353,000,000

Strike 136700 has a total call value of 172,361,000,000 versus a total put value of 618,295,000,000 Combined total value = 790,656,000,000

Strike 136800 has a total call value of 175,968,000,000 versus a total put value of 602,991,000,000 Combined total value = 778,959,000,000

Strike 136900 has a total call value of 179,575,000,000 versus a total put value of 587,687,000,000 Combined total value = 767,262,000,000

Strike 137000 has a total call value of 183,182,000,000 versus a total put value of 572,383,000,000 Combined total value = 755,565,000,000

Strike 137100 has a total call value of 187,286,000,000 versus a total put value of 558,335,000,000 Combined total value = 745,621,000,000

Strike 137200 has a total call value of 191,393,000,000 versus a total put value of 544,287,000,000 Combined total value = 735,680,000,000

Strike 137300 has a total call value of 195,500,000,000 versus a total put value of 530,239,000,000 Combined total value = 725,739,000,000

Strike 137400 has a total call value of 199,607,000,000 versus a total put value of 516,191,000,000 Combined total value = 715,798,000,000

Strike 137500 has a total call value of 203,714,000,000 versus a total put value of 502,143,000,000 Combined total value = 705,857,000,000

Strike 137600 has a total call value of 207,821,000,000 versus a total put value of 488,229,000,000 Combined total value = 696,050,000,000

Strike 137700 has a total call value of 211,928,000,000 versus a total put value of 474,315,000,000 Combined total value = 686,243,000,000

Strike 137800 has a total call value of 216,035,000,000 versus a total put value of 460,401,000,000 Combined total value = 676,436,000,000

Strike 137900 has a total call value of 220,142,000,000 versus a total put value of 446,487,000,000 Combined total value = 666,629,000,000

Strike 138000 has a total call value of 224,249,000,000 versus a total put value of 432,573,000,000 Combined total value = 656,822,000,000

Strike 138100 has a total call value of 228,895,000,000 versus a total put value of 420,272,000,000 Combined total value = 649,167,000,000

Strike 138200 has a total call value of 233,541,000,000 versus a total put value of 407,971,000,000 Combined total value = 641,512,000,000

Strike 138300 has a total call value of 238,187,000,000 versus a total put value of 395,670,000,000 Combined total value = 633,857,000,000

Strike 138400 has a total call value of 242,833,000,000 versus a total put value of 383,369,000,000 Combined total value = 626,202,000,000

Strike 138500 has a total call value of 247,479,000,000 versus a total put value of 371,068,000,000 Combined total value = 618,547,000,000

Strike 138600 has a total call value of 252,146,000,000 versus a total put value of 358,903,000,000 Combined total value = 611,049,000,000

Strike 138700 has a total call value of 256,813,000,000 versus a total put value of 346,738,000,000 Combined total value = 603,551,000,000

Strike 138800 has a total call value of 261,480,000,000 versus a total put value of 334,573,000,000 Combined total value = 596,053,000,000

Strike 138900 has a total call value of 266,147,000,000 versus a total put value of 322,408,000,000 Combined total value = 588,555,000,000

Strike 139000 has a total call value of 270,814,000,000 versus a total put value of 310,243,000,000 Combined total value = 581,057,000,000

Strike 139100 has a total call value of 276,003,000,000 versus a total put value of 299,164,000,000 Combined total value = 575,167,000,000

Strike 139200 has a total call value of 281,192,000,000 versus a total put value of 288,085,000,000 Combined total value = 569,277,000,000

Strike 139300 has a total call value of 286,381,000,000 versus a total put value of 277,006,000,000 Combined total value = 563,387,000,000

Strike 139400 has a total call value of 291,570,000,000 versus a total put value of 265,927,000,000 Combined total value = 557,497,000,000

Strike 139500 has a total call value of 296,759,000,000 versus a total put value of 254,848,000,000 Combined total value = 551,607,000,000

Strike 139600 has a total call value of 301,985,000,000 versus a total put value of 243,791,000,000 Combined total value = 545,776,000,000

Strike 139700 has a total call value of 307,211,000,000 versus a total put value of 232,734,000,000 Combined total value = 539,945,000,000

Strike 139800 has a total call value of 312,437,000,000 versus a total put value of 221,677,000,000 Combined total value = 534,114,000,000

Strike 139900 has a total call value of 317,663,000,000 versus a total put value of 210,622,000,000 Combined total value = 528,285,000,000

Strike 140000 has a total call value of 322,889,000,000 versus a total put value of 199,567,000,000 Combined total value = 522,456,000,000

Strike 140100 has a total call value of 329,999,000,000 versus a total put value of 191,149,000,000 Combined total value = 521,148,000,000

Strike 140200 has a total call value of 337,109,000,000 versus a total put value of 182,731,000,000 Combined total value = 519,840,000,000

Strike 140300 has a total call value of 344,219,000,000 versus a total put value of 174,313,000,000 Combined total value = 518,532,000,000

Strike 140400 has a total call value of 351,329,000,000 versus a total put value of 165,896,000,000 Combined total value = 517,225,000,000

Strike 140500 has a total call value of 358,439,000,000 versus a total put value of 157,480,000,000 Combined total value = 515,919,000,000

Strike 140600 has a total call value of 365,556,000,000 versus a total put value of 149,198,000,000 Combined total value = 514,754,000,000

Strike 140700 has a total call value of 372,673,000,000 versus a total put value of 140,916,000,000 Combined total value = 513,589,000,000

Strike 140800 has a total call value of 379,790,000,000 versus a total put value of 132,634,000,000 Combined total value = 512,424,000,000

Strike 140900 has a total call value of 386,907,000,000 versus a total put value of 124,352,000,000 Combined total value = 511,259,000,000

Strike 141000 has a total call value of 394,024,000,000 versus a total put value of 116,070,000,000 Combined total value = 510,094,000,000

Strike 141100 has a total call value of 402,090,000,000 versus a total put value of 109,331,000,000 Combined total value = 511,421,000,000

Strike 141200 has a total call value of 410,156,000,000 versus a total put value of 102,597,000,000 Combined total value = 512,753,000,000

Strike 141300 has a total call value of 418,222,000,000 versus a total put value of 95,864,000,000 Combined total value = 514,086,000,000

Strike 141400 has a total call value of 426,288,000,000 versus a total put value of 89,133,000,000 Combined total value = 515,421,000,000

Strike 141500 has a total call value of 434,362,000,000 versus a total put value of 82,402,000,000 Combined total value = 516,764,000,000

Strike 141600 has a total call value of 442,686,000,000 versus a total put value of 75,995,000,000 Combined total value = 518,681,000,000

Strike 141700 has a total call value of 451,012,000,000 versus a total put value of 69,588,000,000 Combined total value = 520,600,000,000

Strike 141800 has a total call value of 459,341,000,000 versus a total put value of 63,187,000,000 Combined total value = 522,528,000,000

Strike 141900 has a total call value of 467,670,000,000 versus a total put value of 56,786,000,000 Combined total value = 524,456,000,000

Strike 142000 has a total call value of 475,999,000,000 versus a total put value of 50,386,000,000 Combined total value = 526,385,000,000

Strike 142100 has a total call value of 487,588,000,000 versus a total put value of 47,057,000,000 Combined total value = 534,645,000,000

Strike 142200 has a total call value of 499,177,000,000 versus a total put value of 43,728,000,000 Combined total value = 542,905,000,000

Strike 142300 has a total call value of 510,774,000,000 versus a total put value of 40,399,000,000 Combined total value = 551,173,000,000

Strike 142400 has a total call value of 522,380,000,000 versus a total put value of 37,070,000,000 Combined total value = 559,450,000,000

Strike 142500 has a total call value of 533,998,000,000 versus a total put value of 33,747,000,000 Combined total value = 567,745,000,000

Strike 142600 has a total call value of 546,350,000,000 versus a total put value of 30,870,000,000 Combined total value = 577,220,000,000

Strike 142700 has a total call value of 558,711,000,000 versus a total put value of 27,997,000,000 Combined total value = 586,708,000,000

Strike 142800 has a total call value of 571,083,000,000 versus a total put value of 25,134,000,000 Combined total value = 596,217,000,000

Strike 142900 has a total call value of 583,475,000,000 versus a total put value of 22,281,000,000 Combined total value = 605,756,000,000

Strike 143000 has a total call value of 595,867,000,000 versus a total put value of 19,428,000,000 Combined total value = 615,295,000,000

Strike 143100 has a total call value of 612,970,000,000 versus a total put value of 18,300,000,000 Combined total value = 631,270,000,000

Strike 143200 has a total call value of 630,073,000,000 versus a total put value of 17,173,000,000 Combined total value = 647,246,000,000

Strike 143300 has a total call value of 647,180,000,000 versus a total put value of 16,046,000,000 Combined total value = 663,226,000,000

Strike 143400 has a total call value of 664,289,000,000 versus a total put value of 14,920,000,000 Combined total value = 679,209,000,000

Strike 143500 has a total call value of 681,400,000,000 versus a total put value of 13,795,000,000 Combined total value = 695,195,000,000

Strike 143600 has a total call value of 699,006,000,000 versus a total put value of 12,736,000,000 Combined total value = 711,742,000,000

Strike 143700 has a total call value of 716,614,000,000 versus a total put value of 11,677,000,000 Combined total value = 728,291,000,000

Strike 143800 has a total call value of 734,222,000,000 versus a total put value of 10,618,000,000 Combined total value = 744,840,000,000

Strike 143900 has a total call value of 751,832,000,000 versus a total put value of 9,559,000,000 Combined total value = 761,391,000,000

Strike 144000 has a total call value of 769,442,000,000 versus a total put value of 8,500,000,000 Combined total value = 777,942,000,000

Strike 144100 has a total call value of 791,204,000,000 versus a total put value of 7,861,000,000 Combined total value = 799,065,000,000

Strike 144200 has a total call value of 812,966,000,000 versus a total put value of 7,222,000,000 Combined total value = 820,188,000,000

Strike 144300 has a total call value of 834,730,000,000 versus a total put value of 6,583,000,000 Combined total value = 841,313,000,000

Strike 144400 has a total call value of 856,495,000,000 versus a total put value of 5,944,000,000 Combined total value = 862,439,000,000

Strike 144500 has a total call value of 878,265,000,000 versus a total put value of 5,305,000,000 Combined total value = 883,570,000,000

Strike 144600 has a total call value of 900,370,000,000 versus a total put value of 4,666,000,000 Combined total value = 905,036,000,000

Strike 144700 has a total call value of 922,475,000,000 versus a total put value of 4,027,000,000 Combined total value = 926,502,000,000

Strike 144800 has a total call value of 944,580,000,000 versus a total put value of 3,388,000,000 Combined total value = 947,968,000,000

Strike 144900 has a total call value of 966,690,000,000 versus a total put value of 2,749,000,000 Combined total value = 969,439,000,000

Strike 145000 has a total call value of 989,406,000,000 versus a total put value of 2,110,000,000 Combined total value = 991,516,000,000

Strike 145100 has a total call value of 1,015,510,000,000 versus a total put value of 1,899,000,000 Combined total value = 1,017,409,000,000

Strike 145200 has a total call value of 1,041,614,000,000 versus a total put value of 1,688,000,000 Combined total value = 1,043,302,000,000

Strike 145300 has a total call value of 1,067,718,000,000 versus a total put value of 1,477,000,000 Combined total value = 1,069,195,000,000

Strike 145400 has a total call value of 1,093,822,000,000 versus a total put value of 1,266,000,000 Combined total value = 1,095,088,000,000

Strike 145500 has a total call value of 1,119,926,000,000 versus a total put value of 1,055,000,000 Combined total value = 1,120,981,000,000

Strike 145600 has a total call value of 1,146,083,000,000 versus a total put value of 844,000,000 Combined total value = 1,146,927,000,000

Strike 145700 has a total call value of 1,172,240,000,000 versus a total put value of 633,000,000 Combined total value = 1,172,873,000,000

Strike 145800 has a total call value of 1,198,397,000,000 versus a total put value of 422,000,000 Combined total value = 1,198,819,000,000

Strike 145900 has a total call value of 1,224,554,000,000 versus a total put value of 211,000,000 Combined total value = 1,224,765,000,000

Strike 146000 has a total call value of 1,250,711,000,000 versus a total put value of 0 Combined total value = 1,250,711,000,000

Strike 146100 has a total call value of 1,282,306,000,000 versus a total put value of 0 Combined total value = 1,282,306,000,000

Strike 146200 has a total call value of 1,313,901,000,000 versus a total put value of 0 Combined total value = 1,313,901,000,000

Strike 146300 has a total call value of 1,345,496,000,000 versus a total put value of 0 Combined total value = 1,345,496,000,000

Strike 146400 has a total call value of 1,377,091,000,000 versus a total put value of 0 Combined total value = 1,377,091,000,000

Strike 146500 has a total call value of 1,408,686,000,000 versus a total put value of 0 Combined total value = 1,408,686,000,000

Strike 146600 has a total call value of 1,441,100,000,000 versus a total put value of 0 Combined total value = 1,441,100,000,000

Strike 146700 has a total call value of 1,473,514,000,000 versus a total put value of 0 Combined total value = 1,473,514,000,000

Strike 146800 has a total call value of 1,505,943,000,000 versus a total put value of 0 Combined total value = 1,505,943,000,000

Strike 146900 has a total call value of 1,538,372,000,000 versus a total put value of 0 Combined total value = 1,538,372,000,000

Strike 147000 has a total call value of 1,571,312,000,000 versus a total put value of 0 Combined total value = 1,571,312,000,000

Strike 147100 has a total call value of 1,606,780,000,000 versus a total put value of 0 Combined total value = 1,606,780,000,000

Strike 147200 has a total call value of 1,642,248,000,000 versus a total put value of 0 Combined total value = 1,642,248,000,000

Strike 147300 has a total call value of 1,677,716,000,000 versus a total put value of 0 Combined total value = 1,677,716,000,000

Strike 147400 has a total call value of 1,713,184,000,000 versus a total put value of 0 Combined total value = 1,713,184,000,000

Strike 147500 has a total call value of 1,748,652,000,000 versus a total put value of 0 Combined total value = 1,748,652,000,000

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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