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.

IEX

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.

Indian Energy Exc Ltd

139.29 -0.08 (-0.06%)

L: 138.24 H: 140.95

Max Pain - IEX

16 Jan 2026 04:13 PM IST

Market Closed

Expiry

Max-Pain

145

DFC

7D Avg

Reliability

14D Avg

Reliability

21D Avg

Reliability

Max Pain for IEX is 145

Historical data for IEX-145-CE

LTP (145 CE)

3.56 0.46

Open Interest

2103 171

Historical data for IEX-145-PE

LTP (145 PE)

8.74 0.52

Open Interest

814 -10

Strike 110 has a total call value of 0 versus a total put value of 196,070,250,000 Combined total value = 196,070,250,000

Strike 111 has a total call value of 0 versus a total put value of 189,473,250,000 Combined total value = 189,473,250,000

Strike 112 has a total call value of 0 versus a total put value of 182,876,250,000 Combined total value = 182,876,250,000

Strike 112.5 has a total call value of 0 versus a total put value of 179,582,062,500 Combined total value = 179,582,062,500

Strike 113 has a total call value of 0 versus a total put value of 176,287,875,000 Combined total value = 176,287,875,000

Strike 114 has a total call value of 0 versus a total put value of 169,699,500,000 Combined total value = 169,699,500,000

Strike 115 has a total call value of 2,250,000 versus a total put value of 163,116,375,000 Combined total value = 163,118,625,000

Strike 116 has a total call value of 4,875,000 versus a total put value of 156,637,125,000 Combined total value = 156,642,000,000

Strike 117 has a total call value of 7,500,000 versus a total put value of 150,158,625,000 Combined total value = 150,166,125,000

Strike 117.5 has a total call value of 8,812,500 versus a total put value of 146,919,375,000 Combined total value = 146,928,187,500

Strike 118 has a total call value of 10,125,000 versus a total put value of 143,680,125,000 Combined total value = 143,690,250,000

Strike 119 has a total call value of 12,750,000 versus a total put value of 137,206,125,000 Combined total value = 137,218,875,000

Strike 120 has a total call value of 15,375,000 versus a total put value of 130,732,125,000 Combined total value = 130,747,500,000

Strike 121 has a total call value of 23,625,000 versus a total put value of 124,569,375,000 Combined total value = 124,593,000,000

Strike 122 has a total call value of 31,875,000 versus a total put value of 118,415,625,000 Combined total value = 118,447,500,000

Strike 122.5 has a total call value of 36,000,000 versus a total put value of 115,345,125,000 Combined total value = 115,381,125,000

Strike 123 has a total call value of 41,625,000 versus a total put value of 112,281,375,000 Combined total value = 112,323,000,000

Strike 124 has a total call value of 52,875,000 versus a total put value of 106,170,375,000 Combined total value = 106,223,250,000

Strike 125 has a total call value of 64,125,000 versus a total put value of 100,067,625,000 Combined total value = 100,131,750,000

Strike 126 has a total call value of 129,750,000 versus a total put value of 94,374,750,000 Combined total value = 94,504,500,000

Strike 127 has a total call value of 195,375,000 versus a total put value of 88,714,125,000 Combined total value = 88,909,500,000

Strike 127.5 has a total call value of 228,562,500 versus a total put value of 85,903,312,500 Combined total value = 86,131,875,000

Strike 128 has a total call value of 261,750,000 versus a total put value of 83,126,625,000 Combined total value = 83,388,375,000

Strike 129 has a total call value of 328,125,000 versus a total put value of 77,636,250,000 Combined total value = 77,964,375,000

Strike 130 has a total call value of 405,375,000 versus a total put value of 72,183,000,000 Combined total value = 72,588,375,000

Strike 131 has a total call value of 598,500,000 versus a total put value of 67,509,750,000 Combined total value = 68,108,250,000

Strike 132 has a total call value of 792,375,000 versus a total put value of 62,865,375,000 Combined total value = 63,657,750,000

Strike 132.5 has a total call value of 892,312,500 versus a total put value of 60,562,687,500 Combined total value = 61,455,000,000

Strike 133 has a total call value of 1,009,312,500 versus a total put value of 58,315,125,000 Combined total value = 59,324,437,500

Strike 134 has a total call value of 1,277,812,500 versus a total put value of 53,867,250,000 Combined total value = 55,145,062,500

Strike 135 has a total call value of 1,581,937,500 versus a total put value of 49,472,250,000 Combined total value = 51,054,187,500

Strike 136 has a total call value of 2,089,687,500 versus a total put value of 45,687,000,000 Combined total value = 47,776,687,500

Strike 137 has a total call value of 2,633,812,500 versus a total put value of 41,948,625,000 Combined total value = 44,582,437,500

Strike 137.5 has a total call value of 2,922,562,500 versus a total put value of 40,125,937,500 Combined total value = 43,048,500,000

Strike 138 has a total call value of 3,257,437,500 versus a total put value of 38,347,500,000 Combined total value = 41,604,937,500

Strike 139 has a total call value of 4,011,937,500 versus a total put value of 34,888,500,000 Combined total value = 38,900,437,500

Strike 140 has a total call value of 4,813,312,500 versus a total put value of 31,537,875,000 Combined total value = 36,351,187,500

Strike 141 has a total call value of 6,248,062,500 versus a total put value of 29,022,000,000 Combined total value = 35,270,062,500

Strike 142 has a total call value of 7,751,062,500 versus a total put value of 26,589,750,000 Combined total value = 34,340,812,500

Strike 142.5 has a total call value of 8,573,250,000 versus a total put value of 25,404,375,000 Combined total value = 33,977,625,000

Strike 143 has a total call value of 9,442,875,000 versus a total put value of 24,254,625,000 Combined total value = 33,697,500,000

Strike 144 has a total call value of 11,263,500,000 versus a total put value of 21,988,500,000 Combined total value = 33,252,000,000

Strike 145 has a total call value of 13,197,375,000 versus a total put value of 19,770,750,000 Combined total value = 32,968,125,000

Strike 146 has a total call value of 15,919,875,000 versus a total put value of 17,858,250,000 Combined total value = 33,778,125,000

Strike 147 has a total call value of 18,727,125,000 versus a total put value of 16,005,750,000 Combined total value = 34,732,875,000

Strike 147.5 has a total call value of 20,189,437,500 versus a total put value of 15,097,500,000 Combined total value = 35,286,937,500

Strike 148 has a total call value of 21,688,875,000 versus a total put value of 14,229,562,500 Combined total value = 35,918,437,500

Strike 149 has a total call value of 24,757,500,000 versus a total put value of 12,605,437,500 Combined total value = 37,362,937,500

Strike 150 has a total call value of 27,870,000,000 versus a total put value of 11,031,187,500 Combined total value = 38,901,187,500

Strike 151 has a total call value of 32,230,875,000 versus a total put value of 9,868,312,500 Combined total value = 42,099,187,500

Strike 152 has a total call value of 36,677,625,000 versus a total put value of 8,741,812,500 Combined total value = 45,419,437,500

Strike 152.5 has a total call value of 38,964,000,000 versus a total put value of 8,202,562,500 Combined total value = 47,166,562,500

Strike 153 has a total call value of 41,285,437,500 versus a total put value of 7,720,875,000 Combined total value = 49,006,312,500

Strike 154 has a total call value of 46,005,187,500 versus a total put value of 6,790,500,000 Combined total value = 52,795,687,500

Strike 155 has a total call value of 50,787,562,500 versus a total put value of 5,886,375,000 Combined total value = 56,673,937,500

Strike 156 has a total call value of 56,166,937,500 versus a total put value of 5,179,125,000 Combined total value = 61,346,062,500

Strike 157 has a total call value of 61,618,687,500 versus a total put value of 4,495,875,000 Combined total value = 66,114,562,500

Strike 157.5 has a total call value of 64,384,875,000 versus a total put value of 4,160,250,000 Combined total value = 68,545,125,000

Strike 158 has a total call value of 67,174,687,500 versus a total put value of 3,832,125,000 Combined total value = 71,006,812,500

Strike 159 has a total call value of 72,859,312,500 versus a total put value of 3,211,125,000 Combined total value = 76,070,437,500

Strike 160 has a total call value of 78,599,437,500 versus a total put value of 2,606,250,000 Combined total value = 81,205,687,500

Strike 161 has a total call value of 85,860,937,500 versus a total put value of 2,270,625,000 Combined total value = 88,131,562,500

Strike 162 has a total call value of 93,166,312,500 versus a total put value of 1,957,125,000 Combined total value = 95,123,437,500

Strike 162.5 has a total call value of 96,844,875,000 versus a total put value of 1,812,562,500 Combined total value = 98,657,437,500

Strike 163 has a total call value of 100,523,437,500 versus a total put value of 1,668,750,000 Combined total value = 102,192,187,500

Strike 164 has a total call value of 107,938,312,500 versus a total put value of 1,393,500,000 Combined total value = 109,331,812,500

Strike 165 has a total call value of 115,385,437,500 versus a total put value of 1,134,750,000 Combined total value = 116,520,187,500

Strike 166 has a total call value of 123,203,812,500 versus a total put value of 907,875,000 Combined total value = 124,111,687,500

Strike 167 has a total call value of 131,038,312,500 versus a total put value of 684,750,000 Combined total value = 131,723,062,500

Strike 167.5 has a total call value of 134,973,000,000 versus a total put value of 573,187,500 Combined total value = 135,546,187,500

Strike 168 has a total call value of 138,907,687,500 versus a total put value of 461,625,000 Combined total value = 139,369,312,500

Strike 169 has a total call value of 146,799,937,500 versus a total put value of 238,500,000 Combined total value = 147,038,437,500

Strike 170 has a total call value of 154,705,687,500 versus a total put value of 15,375,000 Combined total value = 154,721,062,500

Strike 171 has a total call value of 163,668,187,500 versus a total put value of 0 Combined total value = 163,668,187,500

Strike 172 has a total call value of 172,642,312,500 versus a total put value of 0 Combined total value = 172,642,312,500

Strike 172.5 has a total call value of 177,169,500,000 versus a total put value of 0 Combined total value = 177,169,500,000

Strike 173 has a total call value of 181,696,687,500 versus a total put value of 0 Combined total value = 181,696,687,500

Strike 174 has a total call value of 190,763,812,500 versus a total put value of 0 Combined total value = 190,763,812,500

Strike 175 has a total call value of 199,835,437,500 versus a total put value of 0 Combined total value = 199,835,437,500

Strike 176 has a total call value of 208,907,062,500 versus a total put value of 0 Combined total value = 208,907,062,500

Strike 177 has a total call value of 217,994,812,500 versus a total put value of 0 Combined total value = 217,994,812,500

Strike 177.5 has a total call value of 222,578,437,500 versus a total put value of 0 Combined total value = 222,578,437,500

Strike 178 has a total call value of 227,162,062,500 versus a total put value of 0 Combined total value = 227,162,062,500

Strike 179 has a total call value of 236,652,562,500 versus a total put value of 0 Combined total value = 236,652,562,500

Strike 180 has a total call value of 246,153,562,500 versus a total put value of 0 Combined total value = 246,153,562,500

Max-Pain Table for Stocks

Commodity Max-Pain Index Max-Pain

Expiry

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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