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

168.21 +0.47 (0.28%)

L: 167.74 H: 169.4

Max Pain - IOC

17 Dec 2025 10:11 AM IST

Live

Expiry

Max Pain for IOC is 166

Historical data for IOC-166-CE

LTP (166 CE)

4.45 0.43

Open Interest

196 -7

Historical data for IOC-166-PE

LTP (166 PE)

1.66 -0.23

Open Interest

175 22

Strike 140 has a total call value of 0 versus a total put value of 83,451,225,000 Combined total value = 83,451,225,000

Strike 141 has a total call value of 4,875,000 versus a total put value of 79,801,800,000 Combined total value = 79,806,675,000

Strike 142 has a total call value of 9,750,000 versus a total put value of 76,152,375,000 Combined total value = 76,162,125,000

Strike 143 has a total call value of 47,287,500 versus a total put value of 72,524,400,000 Combined total value = 72,571,687,500

Strike 144 has a total call value of 84,825,000 versus a total put value of 68,896,425,000 Combined total value = 68,981,250,000

Strike 145 has a total call value of 122,362,500 versus a total put value of 65,279,662,500 Combined total value = 65,402,025,000

Strike 146 has a total call value of 159,900,000 versus a total put value of 61,662,900,000 Combined total value = 61,822,800,000

Strike 147 has a total call value of 200,850,000 versus a total put value of 58,101,712,500 Combined total value = 58,302,562,500

Strike 148 has a total call value of 241,800,000 versus a total put value of 54,540,525,000 Combined total value = 54,782,325,000

Strike 149 has a total call value of 282,750,000 versus a total put value of 51,010,050,000 Combined total value = 51,292,800,000

Strike 150 has a total call value of 323,700,000 versus a total put value of 47,479,575,000 Combined total value = 47,803,275,000

Strike 151 has a total call value of 426,075,000 versus a total put value of 44,111,437,500 Combined total value = 44,537,512,500

Strike 152 has a total call value of 528,450,000 versus a total put value of 40,755,000,000 Combined total value = 41,283,450,000

Strike 153 has a total call value of 630,825,000 versus a total put value of 37,431,712,500 Combined total value = 38,062,537,500

Strike 154 has a total call value of 736,125,000 versus a total put value of 34,167,900,000 Combined total value = 34,904,025,000

Strike 155 has a total call value of 841,425,000 versus a total put value of 30,919,200,000 Combined total value = 31,760,625,000

Strike 156 has a total call value of 1,000,350,000 versus a total put value of 27,849,900,000 Combined total value = 28,850,250,000

Strike 157 has a total call value of 1,162,687,500 versus a total put value of 24,873,225,000 Combined total value = 26,035,912,500

Strike 158 has a total call value of 1,343,062,500 versus a total put value of 21,967,237,500 Combined total value = 23,310,300,000

Strike 159 has a total call value of 1,529,287,500 versus a total put value of 19,153,387,500 Combined total value = 20,682,675,000

Strike 160 has a total call value of 1,715,512,500 versus a total put value of 16,443,375,000 Combined total value = 18,158,887,500

Strike 161 has a total call value of 2,102,587,500 versus a total put value of 14,226,225,000 Combined total value = 16,328,812,500

Strike 162 has a total call value of 2,516,475,000 versus a total put value of 12,136,312,500 Combined total value = 14,652,787,500

Strike 163 has a total call value of 3,016,650,000 versus a total put value of 10,249,687,500 Combined total value = 13,266,337,500

Strike 164 has a total call value of 3,589,462,500 versus a total put value of 8,582,925,000 Combined total value = 12,172,387,500

Strike 165 has a total call value of 4,253,925,000 versus a total put value of 7,090,687,500 Combined total value = 11,344,612,500

Strike 166 has a total call value of 5,266,950,000 versus a total put value of 5,983,575,000 Combined total value = 11,250,525,000

Strike 167 has a total call value of 6,375,525,000 versus a total put value of 4,961,775,000 Combined total value = 11,337,300,000

Strike 168 has a total call value of 7,675,200,000 versus a total put value of 4,085,737,500 Combined total value = 11,760,937,500

Strike 169 has a total call value of 9,212,287,500 versus a total put value of 3,412,987,500 Combined total value = 12,625,275,000

Strike 170 has a total call value of 10,959,487,500 versus a total put value of 2,849,925,000 Combined total value = 13,809,412,500

Strike 171 has a total call value of 13,849,387,500 versus a total put value of 2,506,237,500 Combined total value = 16,355,625,000

Strike 172 has a total call value of 16,842,637,500 versus a total put value of 2,185,462,500 Combined total value = 19,028,100,000

Strike 173 has a total call value of 20,007,487,500 versus a total put value of 1,913,925,000 Combined total value = 21,921,412,500

Strike 174 has a total call value of 23,277,150,000 versus a total put value of 1,651,650,000 Combined total value = 24,928,800,000

Strike 175 has a total call value of 26,739,375,000 versus a total put value of 1,402,537,500 Combined total value = 28,141,912,500

Strike 176 has a total call value of 30,859,725,000 versus a total put value of 1,228,987,500 Combined total value = 32,088,712,500

Strike 177 has a total call value of 35,048,325,000 versus a total put value of 1,055,437,500 Combined total value = 36,103,762,500

Strike 178 has a total call value of 39,324,675,000 versus a total put value of 881,887,500 Combined total value = 40,206,562,500

Strike 179 has a total call value of 43,689,750,000 versus a total put value of 708,337,500 Combined total value = 44,398,087,500

Strike 180 has a total call value of 48,126,975,000 versus a total put value of 534,787,500 Combined total value = 48,661,762,500

Strike 181 has a total call value of 53,232,562,500 versus a total put value of 479,212,500 Combined total value = 53,711,775,000

Strike 182 has a total call value of 58,355,700,000 versus a total put value of 423,637,500 Combined total value = 58,779,337,500

Strike 183 has a total call value of 63,609,000,000 versus a total put value of 369,037,500 Combined total value = 63,978,037,500

Strike 184 has a total call value of 68,862,300,000 versus a total put value of 314,437,500 Combined total value = 69,176,737,500

Strike 185 has a total call value of 74,171,662,500 versus a total put value of 262,275,000 Combined total value = 74,433,937,500

Strike 186 has a total call value of 79,630,687,500 versus a total put value of 211,575,000 Combined total value = 79,842,262,500

Strike 187 has a total call value of 85,116,525,000 versus a total put value of 160,875,000 Combined total value = 85,277,400,000

Strike 188 has a total call value of 90,602,362,500 versus a total put value of 110,175,000 Combined total value = 90,712,537,500

Strike 189 has a total call value of 96,115,012,500 versus a total put value of 59,475,000 Combined total value = 96,174,487,500

Strike 190 has a total call value of 101,627,662,500 versus a total put value of 8,775,000 Combined total value = 101,636,437,500

Strike 191 has a total call value of 107,492,287,500 versus a total put value of 7,312,500 Combined total value = 107,499,600,000

Strike 192 has a total call value of 113,356,912,500 versus a total put value of 5,850,000 Combined total value = 113,362,762,500

Strike 193 has a total call value of 119,222,025,000 versus a total put value of 4,387,500 Combined total value = 119,226,412,500

Strike 194 has a total call value of 125,087,137,500 versus a total put value of 2,925,000 Combined total value = 125,090,062,500

Strike 195 has a total call value of 130,974,187,500 versus a total put value of 1,462,500 Combined total value = 130,975,650,000

Strike 196 has a total call value of 136,861,237,500 versus a total put value of 0 Combined total value = 136,861,237,500

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	1137	1140
ABB	5232	5200
ABCAPITAL	348.4	350
ADANIENSOL	988.05	990
ADANIENT	2231.5	2300
ADANIGREEN	1021	1020
ADANIPORTS	1491.9	1500
ALKEM	5673.5	5700
AMBER	6727	6800
AMBUJACEM	546.2	555
ANGELONE	2519.7	2600
APLAPOLLO	1721	1740
APOLLOHOSP	7009.5	7200
ASHOKLEY	165.91	160
ASIANPAINT	2801.8	2800
ASTRAL	1444.3	1460
AUBANK	994.05	960
AUROPHARMA	1184	1200
AXISBANK	1229.1	1240
BAJAJ-AUTO	8946	9000
BAJAJFINSV	2030.1	2060
BAJFINANCE	1002.8	1020
BANDHANBNK	149.33	150
BANKBARODA	285.2	290
BANKINDIA	141.55	143
BDL	1338.5	1400
BEL	386.2	400
BHARATFORG	1403	1400
BHARTIARTL	2099.1	2100
BHEL	278	280
BIOCON	385.75	390
BLUESTARCO	1815	1780
BOSCHLTD	36295	36500
BPCL	368.25	365
BRITANNIA	6107	6000
BSE	2650	2700
CAMS	750	780
CANBK	150.08	149
CDSL	1489	1560
CGPOWER	681.2	680
CHOLAFIN	1710.3	1700
CIPLA	1495.3	1520
COALINDIA	383.8	384.75
COFORGE	1869.8	1840
COLPAL	2123.6	2180
CONCOR	498.55	520
CROMPTON	251.95	265
CUMMINSIND	4503.1	4500
CYIENT	1138.9	1160
DABUR	496.55	500
DALBHARAT	2048	2040
DELHIVERY	402.8	410
DIVISLAB	6362.5	6400
DIXON	13393	13750
DLF	684.75	710
DMART	3844.6	3900
DRREDDY	1271.9	1270
EICHERMOT	7152	7100
ETERNAL	286.1	295
EXIDEIND	362	375
FEDERALBNK	264	260
FORTIS	872.95	890
GAIL	169.5	175
GLENMARK	1959.1	1940
GMRAIRPORT	102.86	102
GODREJCP	1186.3	1160
GODREJPROP	2020.2	2080
GRASIM	2789.5	2800
HAL	4232	4450
HAVELLS	1397.5	1440
HCLTECH	1658.3	1660
HDFCAMC	2575.6	2620
HDFCBANK	988.1	1000
HDFCLIFE	756.1	770
HEROMOTOCO	5889	6000
HFCL	64.88	68
HINDALCO	845.6	820
HINDPETRO	468.05	460
HINDUNILVR	2281.9	2300
HINDZINC	583.85	550
HUDCO	210.12	220
ICICIBANK	1347	1370
ICICIGI	1947.4	1980
ICICIPRULI	635.5	630
IDEA	11.31	11
IDFCFIRSTB	83.36	82
IEX	140.86	145
IIFL	568.3	560
INDHOTEL	723.75	740
INDIANB	776.95	820
INDIGO	4950	5000
INDUSINDBK	838.15	850
INDUSTOWER	407.15	410
INFY	1597.8	1600
INOXWIND	126.35	130
IOC	168.21	166
IRCTC	668.35	690
IREDA	133.14	140
IRFC	111.71	116
ITC	402.05	405
JINDALSTEL	1007.4	1020
JIOFIN	294	305
JSWENERGY	480.65	490
JSWSTEEL	1087.1	1130
JUBLFOOD	556.2	580
KALYANKJIL	477.8	480
KAYNES	4196.5	4400
KEI	4085.2	4100
KFINTECH	1028.9	1060
KOTAKBANK	2179.1	2160
KPITTECH	1168.4	1200
LAURUSLABS	1012.2	1000
LICHSGFIN	526.35	550
LICI	855.75	880
LODHA	1076.4	1100
LT	4059.6	4040
LTF	302.35	302.5
LTIM	6226.5	6200
LUPIN	2117	2080
M&M	3615.5	3700
MANAPPURAM	284.95	280
MANKIND	2101.8	2200
MARICO	738.1	740
MARUTI	16414	16300
MAXHEALTH	1055.8	1100
MAZDOCK	2384.3	2550
MCX	10164	10100
MFSL	1660.8	1700
MOTHERSON	119.67	116
MPHASIS	2865.2	2900
MUTHOOTFIN	3833.6	3800
NATIONALUM	279.45	270
NAUKRI	1353	1360
NBCC	110.9	112
NCC	157.22	167.5
NESTLEIND	1238.3	1240
NHPC	75.49	78
NMDC	77.31	77
NTPC	321.35	325
NUVAMA	7221	7200
NYKAA	246.25	255
OBEROIRLTY	1627.5	1640
OFSS	7804	8000
OIL	402	410
ONGC	231.85	239
PAGEIND	36155	37000
PATANJALI	535.9	540
PAYTM	1279.4	1300
PERSISTENT	6303	6300
PETRONET	267.15	278
PFC	337.4	355
PGEL	563	560
PHOENIXLTD	1785.7	1740
PIDILITIND	1461.7	1480
PIIND	3221.7	3350
PNB	118.28	120
PNBHOUSING	911.1	910
POLICYBZR	1789.2	1840
POLYCAB	7102.5	7200
POWERGRID	261.15	270
POWERINDIA	19420	19500
PPLPHARMA	168.88	180
PRESTIGE	1606.5	1660
RBLBANK	296.9	310
RECLTD	335.35	350
RELIANCE	1543.8	1540
RVNL	308.4	315
SAIL	129.62	133
SAMMAANCAP	145.06	155
SBICARD	839.65	870
SBILIFE	2013	2020
SBIN	975.85	970
SHREECEM	26115	26500
SHRIRAMFIN	861.35	850
SIEMENS	3153.6	3200
SOLARINDS	11899	12500
SONACOMS	486.1	500
SRF	3009.5	2950
SUNPHARMA	1777.7	1800
SUPREMEIND	3372.4	3400
SUZLON	52.37	54
SYNGENE	644.1	650
TATACONSUM	1178.5	1170
TATAELXSI	5007	5100
TATAMOTORS	0	320
TATAPOWER	381.35	390
TATASTEEL	170.57	170
TATATECH	648.25	670
TCS	3224.6	3200
TECHM	1578.9	1540
TIINDIA	2626.7	2700
TITAGARH	782.55	800
TITAN	3929	3880
TMPV	348.25	360
TORNTPHARM	3743.6	3750
TORNTPOWER	1296.2	1300
TRENT	4083.7	4200
TVSMOTOR	3640	3600
ULTRACEMCO	11522	11700
UNIONBANK	153.51	155
UNITDSPR	1445.9	1440
UNOMINDA	1257.7	1280
UPL	749.75	750
VBL	474.35	470
VEDL	571.3	550
VOLTAS	1389.7	1380
WIPRO	260.98	255
YESBANK	21.55	22
ZYDUSLIFE	917.45	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

BAJAJ-AUTO

BAJAJFINSV

BAJFINANCE

BANDHANBNK

BANKBARODA

BANKEX

BANKINDIA

BANKNIFTY

BDL

BEL

BHARATFORG

BHARTIARTL

BHEL

BIOCON

BLUESTARCO

BOSCHLTD

BPCL

BRITANNIA

BSE

CAMS

CANBK

CDSL

CGPOWER

CHOLAFIN

CIPLA

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COFORGE

COLPAL

CONCOR

COPPER

CROMPTON

CRUDEOIL

CRUDEOILM

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CYIENT

DABUR

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DIVISLAB

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DLF

DMART

DRREDDY

EICHERMOT

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EXIDEIND

FEDERALBNK

FINNIFTY

FORTIS

GAIL

GBPINR

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GLENMARK

GMRAIRPORT

GODREJCP

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GOLD