IDEA
Vodafone Idea Limited
Max pain for IDEA
22 Oct 2024 04:13 PM IST
Max Pain for IDEA is 10
Strike 6 has a total call value of 0 versus a total put value of 166,040,000,000 Combined total value = 166,040,000,000
Strike 7 has a total call value of 0 versus a total put value of 129,832,000,000 Combined total value = 129,832,000,000
Strike 8 has a total call value of 40,000,000 versus a total put value of 95,600,000,000 Combined total value = 95,640,000,000
Strike 9 has a total call value of 1,472,000,000 versus a total put value of 67,340,000,000 Combined total value = 68,812,000,000
Strike 10 has a total call value of 10,064,000,000 versus a total put value of 45,028,000,000 Combined total value = 55,092,000,000
Strike 11 has a total call value of 39,508,000,000 versus a total put value of 30,612,000,000 Combined total value = 70,120,000,000
Strike 12 has a total call value of 84,372,000,000 versus a total put value of 20,088,000,000 Combined total value = 104,460,000,000
Strike 13 has a total call value of 143,028,000,000 versus a total put value of 11,792,000,000 Combined total value = 154,820,000,000
Strike 14 has a total call value of 211,776,000,000 versus a total put value of 6,640,000,000 Combined total value = 218,416,000,000
Strike 15 has a total call value of 294,388,000,000 versus a total put value of 2,936,000,000 Combined total value = 297,324,000,000
Strike 16 has a total call value of 382,064,000,000 versus a total put value of 876,000,000 Combined total value = 382,940,000,000
Strike 17 has a total call value of 469,740,000,000 versus a total put value of 340,000,000 Combined total value = 470,080,000,000
Strike 18 has a total call value of 558,440,000,000 versus a total put value of 0 Combined total value = 558,440,000,000
What is Max Pain?
Max pain, or the max pain price, is the strike price with the most open contract puts and calls - and the price at which the stock would cause financial losses for the largest number of option holders at expiration.
Calculating Max Pain
Max pain is a simple but time consuming calculation. Essentially, it is the sum of the outstanding put and call dollar value of each in-the-money strike price. For each in-the-money strike price for both puts and calls:
- Find the difference between stock price and strike price
- Multiply the result by open interest at that strike
- Add together the dollar value for the put and call at that strike
- Repeat for each strike price
- Find the highest value strike price. This price is equivalent to max pain price.
How can a trader benefit?
As the option expiration approaches, option writers will try to buy or sell shares of stock to drive the price toward a closing price that is profitable for them, or at least to hedge their payouts to option holders. Call writers sell shares to drive share price down and Put holders buy shares to drive share price up. The max pain strike price exists somewhere in the middle.
