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.

IOC

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 Oil Corp Ltd

161.68 -1.48 (-0.91%)

L: 161.4 H: 163.8

Max Pain - IOC

18 Dec 2025 02:26 PM IST

Live

Expiry

Max Pain for IOC is 162

Historical data for IOC-162-CE

LTP (162 CE)

2.32 -1.27

Open Interest

453 54

Historical data for IOC-162-PE

LTP (162 PE)

2.32 0.38

Open Interest

395 71

Strike 135 has a total call value of 0 versus a total put value of 82,822,350,000 Combined total value = 82,822,350,000

Strike 136 has a total call value of 4,875,000 versus a total put value of 79,265,550,000 Combined total value = 79,270,425,000

Strike 137 has a total call value of 9,750,000 versus a total put value of 75,708,750,000 Combined total value = 75,718,500,000

Strike 138 has a total call value of 47,287,500 versus a total put value of 72,171,450,000 Combined total value = 72,218,737,500

Strike 139 has a total call value of 84,825,000 versus a total put value of 68,634,150,000 Combined total value = 68,718,975,000

Strike 140 has a total call value of 122,362,500 versus a total put value of 65,107,575,000 Combined total value = 65,229,937,500

Strike 141 has a total call value of 159,900,000 versus a total put value of 61,581,000,000 Combined total value = 61,740,900,000

Strike 142 has a total call value of 200,850,000 versus a total put value of 58,108,050,000 Combined total value = 58,308,900,000

Strike 143 has a total call value of 241,800,000 versus a total put value of 54,635,100,000 Combined total value = 54,876,900,000

Strike 144 has a total call value of 282,750,000 versus a total put value of 51,186,525,000 Combined total value = 51,469,275,000

Strike 145 has a total call value of 323,700,000 versus a total put value of 47,737,950,000 Combined total value = 48,061,650,000

Strike 146 has a total call value of 426,075,000 versus a total put value of 44,438,550,000 Combined total value = 44,864,625,000

Strike 147 has a total call value of 528,450,000 versus a total put value of 41,168,400,000 Combined total value = 41,696,850,000

Strike 148 has a total call value of 630,825,000 versus a total put value of 37,929,937,500 Combined total value = 38,560,762,500

Strike 149 has a total call value of 736,125,000 versus a total put value of 34,742,662,500 Combined total value = 35,478,787,500

Strike 150 has a total call value of 841,425,000 versus a total put value of 31,568,550,000 Combined total value = 32,409,975,000

Strike 151 has a total call value of 999,375,000 versus a total put value of 28,572,375,000 Combined total value = 29,571,750,000

Strike 152 has a total call value of 1,160,737,500 versus a total put value of 25,645,425,000 Combined total value = 26,806,162,500

Strike 153 has a total call value of 1,340,137,500 versus a total put value of 22,788,187,500 Combined total value = 24,128,325,000

Strike 154 has a total call value of 1,525,387,500 versus a total put value of 20,020,162,500 Combined total value = 21,545,550,000

Strike 155 has a total call value of 1,710,637,500 versus a total put value of 17,341,837,500 Combined total value = 19,052,475,000

Strike 156 has a total call value of 2,082,112,500 versus a total put value of 15,077,887,500 Combined total value = 17,160,000,000

Strike 157 has a total call value of 2,480,400,000 versus a total put value of 12,894,862,500 Combined total value = 15,375,262,500

Strike 158 has a total call value of 2,957,662,500 versus a total put value of 10,915,125,000 Combined total value = 13,872,787,500

Strike 159 has a total call value of 3,507,562,500 versus a total put value of 9,162,075,000 Combined total value = 12,669,637,500

Strike 160 has a total call value of 4,147,650,000 versus a total put value of 7,597,687,500 Combined total value = 11,745,337,500

Strike 161 has a total call value of 5,102,662,500 versus a total put value of 6,406,725,000 Combined total value = 11,509,387,500

Strike 162 has a total call value of 6,155,175,000 versus a total put value of 5,292,787,500 Combined total value = 11,447,962,500

Strike 163 has a total call value of 7,428,525,000 versus a total put value of 4,371,412,500 Combined total value = 11,799,937,500

Strike 164 has a total call value of 9,048,487,500 versus a total put value of 3,659,662,500 Combined total value = 12,708,150,000

Strike 165 has a total call value of 10,863,937,500 versus a total put value of 3,050,287,500 Combined total value = 13,914,225,000

Strike 166 has a total call value of 13,660,725,000 versus a total put value of 2,645,662,500 Combined total value = 16,306,387,500

Strike 167 has a total call value of 16,558,912,500 versus a total put value of 2,265,412,500 Combined total value = 18,824,325,000

Strike 168 has a total call value of 19,634,550,000 versus a total put value of 1,934,887,500 Combined total value = 21,569,437,500

Strike 169 has a total call value of 22,809,150,000 versus a total put value of 1,648,237,500 Combined total value = 24,457,387,500

Strike 170 has a total call value of 26,187,037,500 versus a total put value of 1,397,662,500 Combined total value = 27,584,700,000

Strike 171 has a total call value of 30,136,275,000 versus a total put value of 1,224,112,500 Combined total value = 31,360,387,500

Strike 172 has a total call value of 34,178,137,500 versus a total put value of 1,050,562,500 Combined total value = 35,228,700,000

Strike 173 has a total call value of 38,365,275,000 versus a total put value of 877,012,500 Combined total value = 39,242,287,500

Strike 174 has a total call value of 42,647,475,000 versus a total put value of 703,462,500 Combined total value = 43,350,937,500

Strike 175 has a total call value of 47,001,337,500 versus a total put value of 529,912,500 Combined total value = 47,531,250,000

Strike 176 has a total call value of 51,985,537,500 versus a total put value of 474,825,000 Combined total value = 52,460,362,500

Strike 177 has a total call value of 56,990,212,500 versus a total put value of 419,737,500 Combined total value = 57,409,950,000

Strike 178 has a total call value of 62,103,112,500 versus a total put value of 365,625,000 Combined total value = 62,468,737,500

Strike 179 has a total call value of 67,216,012,500 versus a total put value of 311,512,500 Combined total value = 67,527,525,000

Strike 180 has a total call value of 72,362,550,000 versus a total put value of 259,837,500 Combined total value = 72,622,387,500

Strike 181 has a total call value of 77,663,137,500 versus a total put value of 209,625,000 Combined total value = 77,872,762,500

Strike 182 has a total call value of 82,990,050,000 versus a total put value of 159,412,500 Combined total value = 83,149,462,500

Strike 183 has a total call value of 88,316,962,500 versus a total put value of 109,200,000 Combined total value = 88,426,162,500

Strike 184 has a total call value of 93,668,250,000 versus a total put value of 58,987,500 Combined total value = 93,727,237,500

Strike 185 has a total call value of 99,019,537,500 versus a total put value of 8,775,000 Combined total value = 99,028,312,500

Strike 186 has a total call value of 104,692,087,500 versus a total put value of 7,312,500 Combined total value = 104,699,400,000

Strike 187 has a total call value of 110,364,637,500 versus a total put value of 5,850,000 Combined total value = 110,370,487,500

Strike 188 has a total call value of 116,037,675,000 versus a total put value of 4,387,500 Combined total value = 116,042,062,500

Strike 189 has a total call value of 121,710,712,500 versus a total put value of 2,925,000 Combined total value = 121,713,637,500

Strike 190 has a total call value of 127,420,800,000 versus a total put value of 1,462,500 Combined total value = 127,422,262,500

Strike 191 has a total call value of 133,130,887,500 versus a total put value of 0 Combined total value = 133,130,887,500

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	1142.6	1140
ABB	5081.5	5200
ABCAPITAL	344.3	350
ADANIENSOL	975	990
ADANIENT	2224.5	2300
ADANIGREEN	1008.5	1020
ADANIPORTS	1486	1500
ALKEM	5530.5	5650
AMBER	6562.5	6800
AMBUJACEM	535.5	550
ANGELONE	2474.2	2550
APLAPOLLO	1789.1	1760
APOLLOHOSP	6894	7100
ASHOKLEY	171.3	162
ASIANPAINT	2759.3	2800
ASTRAL	1407.6	1440
AUBANK	987.5	960
AUROPHARMA	1203.7	1200
AXISBANK	1229	1240
BAJAJ-AUTO	8782.5	9000
BAJAJFINSV	2021	2060
BAJFINANCE	999.5	1020
BANDHANBNK	145.45	150
BANKBARODA	287.85	290
BANKINDIA	141.89	143
BDL	1336	1380
BEL	382.05	400
BHARATFORG	1399	1400
BHARTIARTL	2092.5	2100
BHEL	272.85	280
BIOCON	390.85	390
BLUESTARCO	1855.3	1800
BOSCHLTD	35585	36000
BPCL	361.9	365
BRITANNIA	6016	6000
BSE	2674.6	2700
CAMS	744.5	770
CANBK	149.3	150
CDSL	1479.4	1540
CGPOWER	659.25	680
CHOLAFIN	1671.4	1700
CIPLA	1497.7	1520
COALINDIA	385.15	384.75
COFORGE	1842.4	1840
COLPAL	2086.7	2160
CONCOR	497.1	520
CROMPTON	256	265
CUMMINSIND	4372.1	4400
CYIENT	1135.4	1140
DABUR	490.9	500
DALBHARAT	2022.7	2040
DELHIVERY	399.95	410
DIVISLAB	6372	6400
DIXON	13223	13750
DLF	680.7	710
DMART	3750.5	3900
DRREDDY	1275.2	1270
EICHERMOT	7075.5	7100
ETERNAL	283.7	295
EXIDEIND	357.6	370
FEDERALBNK	264.75	260
FORTIS	866.1	890
GAIL	167.35	175
GLENMARK	1948.4	1940
GMRAIRPORT	99.94	102
GODREJCP	1180.9	1160
GODREJPROP	1997	2060
GRASIM	2806.1	2800
HAL	4236.4	4450
HAVELLS	1398.3	1440
HCLTECH	1655.6	1660
HDFCAMC	2711.2	2680
HDFCBANK	981.9	990
HDFCLIFE	753.95	770
HEROMOTOCO	5731	5900
HFCL	64.34	67
HINDALCO	855.35	820
HINDPETRO	462.55	460
HINDUNILVR	2258.9	2300
HINDZINC	590.2	560
HUDCO	205.88	220
ICICIBANK	1359.4	1370
ICICIGI	1947.1	1960
ICICIPRULI	643.8	630
IDEA	11.27	11
IDFCFIRSTB	83.52	82
IEX	139.66	145
IIFL	557.05	560
INDHOTEL	718.15	730
INDIANB	774.35	820
INDIGO	5102	5100
INDUSINDBK	831.25	850
INDUSTOWER	408	410
INFY	1623.1	1600
INOXWIND	124.4	130
IOC	161.68	162
IRCTC	662.05	685
IREDA	130.81	137.5
IRFC	110.54	115
ITC	400.3	405
JINDALSTEL	980.8	1020
JIOFIN	290.9	305
JSWENERGY	468.2	490
JSWSTEEL	1080.9	1120
JUBLFOOD	555.6	580
KALYANKJIL	469.8	480
KAYNES	4052.5	4300
KEI	4077.6	4100
KFINTECH	1062	1060
KOTAKBANK	2163.8	2160
KPITTECH	1150.8	1200
LAURUSLABS	1011.1	1000
LICHSGFIN	526.6	550
LICI	841.6	870
LODHA	1069.1	1100
LT	4032.9	4040
LTF	299.35	302.5
LTIM	6190	6200
LUPIN	2110.4	2100
M&M	3567.3	3650
MANAPPURAM	288	280
MANKIND	2125.1	2200
MARICO	740.3	740
MARUTI	16347	16200
MAXHEALTH	1050	1100
MAZDOCK	2346.9	2500
MCX	10133	10100
MFSL	1677.1	1700
MOTHERSON	117.05	115
MPHASIS	2872	2900
MUTHOOTFIN	3739.1	3750
NATIONALUM	279.55	270
NAUKRI	1337.1	1360
NBCC	107.89	111
NCC	153.5	165
NESTLEIND	1239.3	1240
NHPC	74.76	78
NMDC	76.43	77
NTPC	317.05	325
NUVAMA	7252.5	7300
NYKAA	242.75	252.5
OBEROIRLTY	1652.6	1660
OFSS	7608	8000
OIL	399	410
ONGC	231.69	237.5
PAGEIND	35645	37000
PATANJALI	552.05	550
PAYTM	1282.2	1300
PERSISTENT	6286.5	6300
PETRONET	267.8	278
PFC	333.65	355
PGEL	564.85	560
PHOENIXLTD	1790.6	1760
PIDILITIND	1445.8	1480
PIIND	3200.7	3350
PNB	118.57	120
PNBHOUSING	894	900
POLICYBZR	1829.8	1840
POLYCAB	7073	7200
POWERGRID	256.85	270
POWERINDIA	18240	19000
PPLPHARMA	165.91	175
PRESTIGE	1594	1640
RBLBANK	298	305
RECLTD	336.9	350
RELIANCE	1544	1540
RVNL	304.5	310
SAIL	127.39	132
SAMMAANCAP	145.24	155
SBICARD	845.2	870
SBILIFE	2012.7	2020
SBIN	976	970
SHREECEM	25660	26500
SHRIRAMFIN	865.45	850
SIEMENS	3057.4	3150
SOLARINDS	11730	12500
SONACOMS	486	500
SRF	3042.7	3000
SUNPHARMA	1743.2	1760
SUPREMEIND	3344.5	3400
SUZLON	51.5	54
SYNGENE	653.35	650
TATACONSUM	1173.1	1180
TATAELXSI	4961	5000
TATAMOTORS	0	320
TATAPOWER	373.25	390
TATASTEEL	168.24	170
TATATECH	639.75	670
TCS	3268.5	3220
TECHM	1595	1560
TIINDIA	2571.5	2700
TITAGARH	768.65	800
TITAN	3898.3	3860
TMPV	344	360
TORNTPHARM	3736.9	3750
TORNTPOWER	1249	1300
TRENT	4008	4200
TVSMOTOR	3582.6	3600
ULTRACEMCO	11418	11600
UNIONBANK	153.86	155
UNITDSPR	1391.6	1440
UNOMINDA	1220.4	1280
UPL	742.35	750
VBL	470.35	470
VEDL	578.4	555
VOLTAS	1401.3	1400
WIPRO	261.9	257.5
YESBANK	21.38	22
ZYDUSLIFE	911.8	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 IOC

IOC

360ONE

ABB

ABCAPITAL

ADANIENSOL

ADANIENT

ADANIGREEN

ADANIPORTS

ALKEM

AMBER

AMBUJACEM

ANGELONE

APLAPOLLO

APOLLOHOSP

ASHOKLEY

ASIANPAINT

ASTRAL

AUBANK

AUROPHARMA

AXISBANK

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