IDEA
VODAFONE IDEA LIMITED
Max pain for IDEA
02 Jul 2024 11:14 AM IST
Max Pain for IDEA is 17
Strike 10 has a total call value of 0 versus a total put value of 410,024,000,000 Combined total value = 410,024,000,000
Strike 11 has a total call value of 0 versus a total put value of 345,240,000,000 Combined total value = 345,240,000,000
Strike 12 has a total call value of 0 versus a total put value of 280,456,000,000 Combined total value = 280,456,000,000
Strike 13 has a total call value of 0 versus a total put value of 216,312,000,000 Combined total value = 216,312,000,000
Strike 14 has a total call value of 0 versus a total put value of 153,460,000,000 Combined total value = 153,460,000,000
Strike 15 has a total call value of 428,000,000 versus a total put value of 94,528,000,000 Combined total value = 94,956,000,000
Strike 16 has a total call value of 4,952,000,000 versus a total put value of 50,908,000,000 Combined total value = 55,860,000,000
Strike 17 has a total call value of 14,440,000,000 versus a total put value of 19,772,000,000 Combined total value = 34,212,000,000
Strike 18 has a total call value of 37,180,000,000 versus a total put value of 5,000,000,000 Combined total value = 42,180,000,000
Strike 19 has a total call value of 90,776,000,000 versus a total put value of 1,208,000,000 Combined total value = 91,984,000,000
Strike 20 has a total call value of 162,248,000,000 versus a total put value of 0 Combined total value = 162,248,000,000
Strike 21 has a total call value of 260,560,000,000 versus a total put value of 0 Combined total value = 260,560,000,000
Strike 22 has a total call value of 369,380,000,000 versus a total put value of 0 Combined total value = 369,380,000,000
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.