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.

HDFCBANK

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.

Hdfc Bank Ltd

993.4 -2.70 (-0.27%)

L: 990.1 H: 997.4

Max Pain - HDFCBANK

16 Dec 2025 11:56 AM IST

Live

Expiry

Max Pain for HDFCBANK is 1000

Historical data for HDFCBANK-1000-CE

LTP (1000 CE)

10.2 -1.15

Open Interest

11604 868

Historical data for HDFCBANK-1000-PE

LTP (1000 PE)

13.1 0.8

Open Interest

6721 355

Strike 860 has a total call value of 0 versus a total put value of 273,906,600,000 Combined total value = 273,906,600,000

Strike 865 has a total call value of 1,650,000 versus a total put value of 262,238,075,000 Combined total value = 262,239,725,000

Strike 870 has a total call value of 3,300,000 versus a total put value of 250,569,550,000 Combined total value = 250,572,850,000

Strike 875 has a total call value of 4,950,000 versus a total put value of 238,930,175,000 Combined total value = 238,935,125,000

Strike 880 has a total call value of 6,600,000 versus a total put value of 227,290,800,000 Combined total value = 227,297,400,000

Strike 885 has a total call value of 8,250,000 versus a total put value of 215,686,625,000 Combined total value = 215,694,875,000

Strike 890 has a total call value of 9,900,000 versus a total put value of 204,082,450,000 Combined total value = 204,092,350,000

Strike 895 has a total call value of 11,550,000 versus a total put value of 192,527,775,000 Combined total value = 192,539,325,000

Strike 900 has a total call value of 13,200,000 versus a total put value of 180,973,100,000 Combined total value = 180,986,300,000

Strike 905 has a total call value of 170,775,000 versus a total put value of 169,859,525,000 Combined total value = 170,030,300,000

Strike 910 has a total call value of 328,350,000 versus a total put value of 158,745,950,000 Combined total value = 159,074,300,000

Strike 915 has a total call value of 488,125,000 versus a total put value of 147,941,475,000 Combined total value = 148,429,600,000

Strike 920 has a total call value of 647,900,000 versus a total put value of 137,137,000,000 Combined total value = 137,784,900,000

Strike 925 has a total call value of 809,875,000 versus a total put value of 126,616,875,000 Combined total value = 127,426,750,000

Strike 930 has a total call value of 971,850,000 versus a total put value of 116,134,150,000 Combined total value = 117,106,000,000

Strike 935 has a total call value of 1,135,475,000 versus a total put value of 106,014,150,000 Combined total value = 107,149,625,000

Strike 940 has a total call value of 1,299,100,000 versus a total put value of 96,017,625,000 Combined total value = 97,316,725,000

Strike 945 has a total call value of 1,486,375,000 versus a total put value of 86,394,825,000 Combined total value = 87,881,200,000

Strike 950 has a total call value of 1,679,975,000 versus a total put value of 76,857,550,000 Combined total value = 78,537,525,000

Strike 955 has a total call value of 1,964,050,000 versus a total put value of 68,048,475,000 Combined total value = 70,012,525,000

Strike 960 has a total call value of 2,249,500,000 versus a total put value of 59,383,500,000 Combined total value = 61,633,000,000

Strike 965 has a total call value of 2,621,850,000 versus a total put value of 51,135,700,000 Combined total value = 53,757,550,000

Strike 970 has a total call value of 3,003,275,000 versus a total put value of 43,120,000,000 Combined total value = 46,123,275,000

Strike 975 has a total call value of 3,477,375,000 versus a total put value of 36,319,525,000 Combined total value = 39,796,900,000

Strike 980 has a total call value of 3,993,825,000 versus a total put value of 29,832,000,000 Combined total value = 33,825,825,000

Strike 985 has a total call value of 4,803,425,000 versus a total put value of 24,201,375,000 Combined total value = 29,004,800,000

Strike 990 has a total call value of 5,764,000,000 versus a total put value of 18,812,475,000 Combined total value = 24,576,475,000

Strike 995 has a total call value of 7,423,625,000 versus a total put value of 14,272,225,000 Combined total value = 21,695,850,000

Strike 1000 has a total call value of 9,753,700,000 versus a total put value of 10,264,650,000 Combined total value = 20,018,350,000

Strike 1005 has a total call value of 15,274,875,000 versus a total put value of 8,105,350,000 Combined total value = 23,380,225,000

Strike 1010 has a total call value of 21,700,525,000 versus a total put value of 6,376,975,000 Combined total value = 28,077,500,000

Strike 1015 has a total call value of 29,777,000,000 versus a total put value of 5,252,225,000 Combined total value = 35,029,225,000

Strike 1020 has a total call value of 38,488,725,000 versus a total put value of 4,282,850,000 Combined total value = 42,771,575,000

Strike 1025 has a total call value of 49,514,850,000 versus a total put value of 3,648,975,000 Combined total value = 53,163,825,000

Strike 1030 has a total call value of 60,867,950,000 versus a total put value of 3,073,125,000 Combined total value = 63,941,075,000

Strike 1035 has a total call value of 73,088,400,000 versus a total put value of 2,636,700,000 Combined total value = 75,725,100,000

Strike 1040 has a total call value of 85,748,025,000 versus a total put value of 2,235,200,000 Combined total value = 87,983,225,000

Strike 1045 has a total call value of 99,002,200,000 versus a total put value of 1,908,775,000 Combined total value = 100,910,975,000

Strike 1050 has a total call value of 112,452,450,000 versus a total put value of 1,599,675,000 Combined total value = 114,052,125,000

Strike 1055 has a total call value of 126,830,825,000 versus a total put value of 1,428,900,000 Combined total value = 128,259,725,000

Strike 1060 has a total call value of 141,328,000,000 versus a total put value of 1,258,125,000 Combined total value = 142,586,125,000

Strike 1065 has a total call value of 156,170,850,000 versus a total put value of 1,109,075,000 Combined total value = 157,279,925,000

Strike 1070 has a total call value of 171,121,500,000 versus a total put value of 965,250,000 Combined total value = 172,086,750,000

Strike 1075 has a total call value of 186,325,425,000 versus a total put value of 830,225,000 Combined total value = 187,155,650,000

Strike 1080 has a total call value of 201,529,350,000 versus a total put value of 695,200,000 Combined total value = 202,224,550,000

Strike 1085 has a total call value of 217,274,475,000 versus a total put value of 565,675,000 Combined total value = 217,840,150,000

Strike 1090 has a total call value of 233,019,600,000 versus a total put value of 436,150,000 Combined total value = 233,455,750,000

Strike 1095 has a total call value of 249,710,450,000 versus a total put value of 306,625,000 Combined total value = 250,017,075,000

Strike 1100 has a total call value of 266,401,300,000 versus a total put value of 177,100,000 Combined total value = 266,578,400,000

Strike 1105 has a total call value of 283,788,450,000 versus a total put value of 139,150,000 Combined total value = 283,927,600,000

Strike 1110 has a total call value of 301,175,600,000 versus a total put value of 101,200,000 Combined total value = 301,276,800,000

Strike 1115 has a total call value of 318,644,700,000 versus a total put value of 63,250,000 Combined total value = 318,707,950,000

Strike 1120 has a total call value of 336,113,800,000 versus a total put value of 25,300,000 Combined total value = 336,139,100,000

Strike 1125 has a total call value of 353,748,450,000 versus a total put value of 12,650,000 Combined total value = 353,761,100,000

Strike 1130 has a total call value of 371,383,100,000 versus a total put value of 0 Combined total value = 371,383,100,000

Max-Pain Table for Stocks

Max-Pain Table Expiry

Note:- click on symbol to see more detailed view

Max Pain Table (Stocks)
Symbol	Symbol Ltp	Max Pain
360ONE	1140.7	1140
ABB	5267.5	5200
ABCAPITAL	350.2	350
ADANIENSOL	998.6	990
ADANIENT	2244.5	2300
ADANIGREEN	1027.5	1040
ADANIPORTS	1501.8	1500
ALKEM	5634.5	5700
AMBER	6792	6800
AMBUJACEM	546.5	550
ANGELONE	2553.6	2600
APLAPOLLO	1730.2	1740
APOLLOHOSP	7118	7200
ASHOKLEY	166.96	160
ASIANPAINT	2793.2	2800
ASTRAL	1459.1	1460
AUBANK	978.25	960
AUROPHARMA	1176.9	1200
AXISBANK	1234.2	1250
BAJAJ-AUTO	8962	9000
BAJAJFINSV	2048.8	2060
BAJFINANCE	1001.6	1020
BANDHANBNK	150.6	150
BANKBARODA	281	290
BANKINDIA	140.28	144
BDL	1367.2	1420
BEL	385.3	400
BHARATFORG	1399.9	1400
BHARTIARTL	2092.6	2100
BHEL	278.85	280
BIOCON	386.2	390
BLUESTARCO	1816.5	1780
BOSCHLTD	36035	36500
BPCL	362.55	365
BRITANNIA	6097	6000
BSE	2598	2700
CAMS	753.2	780
CANBK	147.07	148
CDSL	1504.3	1560
CGPOWER	665.2	680
CHOLAFIN	1719.8	1700
CIPLA	1503.5	1520
COALINDIA	378.7	384.75
COFORGE	1851.5	1840
COLPAL	2168.1	2180
CONCOR	502.35	520
CROMPTON	253.85	265
CUMMINSIND	4496	4500
CYIENT	1151.2	1160
DABUR	503.2	505
DALBHARAT	2065.6	2040
DELHIVERY	401.95	415
DIVISLAB	6302	6400
DIXON	13597	13750
DLF	691	720
DMART	3893.8	3900
DRREDDY	1276.1	1270
EICHERMOT	7073.5	7100
ETERNAL	284.75	295
EXIDEIND	368.2	375
FEDERALBNK	262.85	260
FORTIS	874.2	880
GAIL	168.4	175
GLENMARK	1970.1	1940
GMRAIRPORT	103.32	102
GODREJCP	1192.4	1180
GODREJPROP	2036.9	2080
GRASIM	2805	2800
HAL	4268.7	4500
HAVELLS	1423	1440
HCLTECH	1652	1660
HDFCAMC	2567.3	2625
HDFCBANK	993.4	1000
HDFCLIFE	774.1	770
HEROMOTOCO	5955	6050
HFCL	66.07	68
HINDALCO	834.6	820
HINDPETRO	462.7	460
HINDUNILVR	2294.6	2300
HINDZINC	565.75	540
HUDCO	211.54	220
ICICIBANK	1363.8	1380
ICICIGI	1960.1	1980
ICICIPRULI	647	630
IDEA	11.3	11
IDFCFIRSTB	83.51	82
IEX	140.8	145
IIFL	566	560
INDHOTEL	728.05	740
INDIANB	767.2	810
INDIGO	4976.5	5000
INDUSINDBK	843.8	850
INDUSTOWER	407.45	410
INFY	1588.8	1600
INOXWIND	125.84	130
IOC	166.95	165
IRCTC	670.5	690
IREDA	134.14	140
IRFC	112.44	117
ITC	403.1	405
JINDALSTEL	1014.2	1030
JIOFIN	294.95	305
JSWENERGY	478.25	490
JSWSTEEL	1095.9	1140
JUBLFOOD	566.8	590
KALYANKJIL	478.1	480
KAYNES	4211	4400
KEI	4144.9	4100
KFINTECH	1037.5	1060
KOTAKBANK	2188.9	2160
KPITTECH	1182.2	1200
LAURUSLABS	998.4	1000
LICHSGFIN	529.7	550
LICI	854.55	880
LODHA	1083.1	1120
LT	4058.4	4040
LTF	300.55	302.5
LTIM	6225	6150
LUPIN	2092.4	2080
M&M	3620.5	3650
MANAPPURAM	282.25	280
MANKIND	2128	2200
MARICO	741.5	740
MARUTI	16397	16200
MAXHEALTH	1082	1100
MAZDOCK	2424.7	2600
MCX	10175	10100
MFSL	1686.5	1700
MOTHERSON	119.76	116
MPHASIS	2858.4	2900
MUTHOOTFIN	3826	3750
NATIONALUM	274.65	270
NAUKRI	1346.5	1360
NBCC	112.01	113
NCC	158.75	170
NESTLEIND	1244.5	1240
NHPC	76.18	78
NMDC	76.94	77
NTPC	321.05	325
NUVAMA	7267	7200
NYKAA	246.9	255
OBEROIRLTY	1647.8	1660
OFSS	7830	8000
OIL	402.15	415
ONGC	232.51	240
PAGEIND	36490	37500
PATANJALI	531.55	545
PAYTM	1286.5	1300
PERSISTENT	6230	6300
PETRONET	266.55	280
PFC	336.8	360
PGEL	559.8	560
PHOENIXLTD	1782.7	1740
PIDILITIND	1480.8	1480
PIIND	3243.6	3350
PNB	117.27	120
PNBHOUSING	917.3	910
POLICYBZR	1826.6	1860
POLYCAB	7309	7300
POWERGRID	261.9	272.5
POWERINDIA	19330	19500
PPLPHARMA	169.34	180
PRESTIGE	1625.6	1660
RBLBANK	299.45	310
RECLTD	337.2	355
RELIANCE	1543	1540
RVNL	310.25	315
SAIL	129.13	133
SAMMAANCAP	147.73	155
SBICARD	851.3	870
SBILIFE	2042.5	2020
SBIN	963.45	970
SHREECEM	26195	26500
SHRIRAMFIN	850.55	850
SIEMENS	3136.5	3200
SOLARINDS	12001	12500
SONACOMS	486	500
SRF	3017.7	2950
SUNPHARMA	1785.7	1800
SUPREMEIND	3403.8	3400
SUZLON	52.62	54
SYNGENE	654.8	650
TATACONSUM	1171.6	1170
TATAELXSI	5007	5100
TATAMOTORS	0	320
TATAPOWER	380	390
TATASTEEL	169.4	170
TATATECH	651.05	680
TCS	3204.8	3200
TECHM	1573.8	1540
TIINDIA	2622.3	2700
TITAGARH	790.5	800
TITAN	3910	3840
TMPV	346.85	360
TORNTPHARM	3764.2	3800
TORNTPOWER	1284.3	1300
TRENT	4113.2	4200
TVSMOTOR	3614.6	3600
ULTRACEMCO	11572	11700
UNIONBANK	152.69	152.5
UNITDSPR	1450.6	1440
UNOMINDA	1239.3	1280
UPL	751.6	750
VBL	481.65	470
VEDL	547.5	535
VOLTAS	1391	1360
WIPRO	260.31	255
YESBANK	21.49	22
ZYDUSLIFE	920.9	930

Note:

Stock LTP > Max Pain	Bearish Trend
Stock LTP < Max Pain	Bullish Trend

Frequently Asked Questions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Max Pain becomes increasingly relevant as option expiration approaches:

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

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

Related Pages for HDFCBANK

HDFCBANK

360ONE

ABB

ABCAPITAL

ADANIENSOL

ADANIENT

ADANIGREEN

ADANIPORTS

ALKEM

AMBER

AMBUJACEM

ANGELONE

APLAPOLLO

APOLLOHOSP

ASHOKLEY

ASIANPAINT

ASTRAL

AUBANK

AUROPHARMA

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