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.

ITC

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.

Itc Ltd

400 -1.70 (-0.42%)

L: 399.8 H: 403.1

Max Pain - ITC

17 Dec 2025 12:17 PM IST

Live

Expiry

Max Pain for ITC is 405

Historical data for ITC-405-CE

LTP (405 CE)

2.15 -0.8

Open Interest

5680 216

Historical data for ITC-405-PE

LTP (405 PE)

5.75 1.15

Open Interest

1951 -101

Strike 340 has a total call value of 0 versus a total put value of 202,521,600,000 Combined total value = 202,521,600,000

Strike 342.5 has a total call value of 0 versus a total put value of 193,783,600,000 Combined total value = 193,783,600,000

Strike 345 has a total call value of 0 versus a total put value of 185,045,600,000 Combined total value = 185,045,600,000

Strike 347.5 has a total call value of 0 versus a total put value of 176,308,800,000 Combined total value = 176,308,800,000

Strike 350 has a total call value of 0 versus a total put value of 167,572,000,000 Combined total value = 167,572,000,000

Strike 352.5 has a total call value of 0 versus a total put value of 158,866,800,000 Combined total value = 158,866,800,000

Strike 355 has a total call value of 0 versus a total put value of 150,161,600,000 Combined total value = 150,161,600,000

Strike 357.5 has a total call value of 0 versus a total put value of 141,469,200,000 Combined total value = 141,469,200,000

Strike 360 has a total call value of 0 versus a total put value of 132,776,800,000 Combined total value = 132,776,800,000

Strike 362.5 has a total call value of 0 versus a total put value of 124,115,600,000 Combined total value = 124,115,600,000

Strike 365 has a total call value of 0 versus a total put value of 115,454,400,000 Combined total value = 115,454,400,000

Strike 367.5 has a total call value of 0 versus a total put value of 106,807,200,000 Combined total value = 106,807,200,000

Strike 370 has a total call value of 0 versus a total put value of 98,160,000,000 Combined total value = 98,160,000,000

Strike 372.5 has a total call value of 1,600,000 versus a total put value of 89,653,200,000 Combined total value = 89,654,800,000

Strike 375 has a total call value of 3,200,000 versus a total put value of 81,150,400,000 Combined total value = 81,153,600,000

Strike 377.5 has a total call value of 7,200,000 versus a total put value of 73,163,200,000 Combined total value = 73,170,400,000

Strike 380 has a total call value of 14,000,000 versus a total put value of 65,646,800,000 Combined total value = 65,660,800,000

Strike 382.5 has a total call value of 131,200,000 versus a total put value of 58,581,600,000 Combined total value = 58,712,800,000

Strike 385 has a total call value of 248,400,000 versus a total put value of 51,550,800,000 Combined total value = 51,799,200,000

Strike 387.5 has a total call value of 373,200,000 versus a total put value of 44,753,600,000 Combined total value = 45,126,800,000

Strike 390 has a total call value of 498,000,000 versus a total put value of 38,120,400,000 Combined total value = 38,618,400,000

Strike 392.5 has a total call value of 738,800,000 versus a total put value of 32,830,400,000 Combined total value = 33,569,200,000

Strike 395 has a total call value of 995,600,000 versus a total put value of 27,736,400,000 Combined total value = 28,732,000,000

Strike 397.5 has a total call value of 1,337,600,000 versus a total put value of 23,023,200,000 Combined total value = 24,360,800,000

Strike 400 has a total call value of 1,727,600,000 versus a total put value of 18,428,000,000 Combined total value = 20,155,600,000

Strike 402.5 has a total call value of 3,350,800,000 versus a total put value of 15,077,200,000 Combined total value = 18,428,000,000

Strike 405 has a total call value of 5,444,800,000 versus a total put value of 12,157,600,000 Combined total value = 17,602,400,000

Strike 407.5 has a total call value of 9,810,800,000 versus a total put value of 10,018,400,000 Combined total value = 19,829,200,000

Strike 410 has a total call value of 14,525,600,000 versus a total put value of 8,132,400,000 Combined total value = 22,658,000,000

Strike 412.5 has a total call value of 21,956,000,000 versus a total put value of 6,979,200,000 Combined total value = 28,935,200,000

Strike 415 has a total call value of 29,650,000,000 versus a total put value of 5,917,200,000 Combined total value = 35,567,200,000

Strike 417.5 has a total call value of 38,214,400,000 versus a total put value of 5,030,400,000 Combined total value = 43,244,800,000

Strike 420 has a total call value of 46,860,400,000 versus a total put value of 4,154,000,000 Combined total value = 51,014,400,000

Strike 422.5 has a total call value of 56,690,000,000 versus a total put value of 3,676,800,000 Combined total value = 60,366,800,000

Strike 425 has a total call value of 66,593,600,000 versus a total put value of 3,210,000,000 Combined total value = 69,803,600,000

Strike 427.5 has a total call value of 76,806,400,000 versus a total put value of 2,792,400,000 Combined total value = 79,598,800,000

Strike 430 has a total call value of 87,057,600,000 versus a total put value of 2,376,000,000 Combined total value = 89,433,600,000

Strike 432.5 has a total call value of 97,976,400,000 versus a total put value of 2,062,800,000 Combined total value = 100,039,200,000

Strike 435 has a total call value of 108,965,200,000 versus a total put value of 1,752,000,000 Combined total value = 110,717,200,000

Strike 437.5 has a total call value of 120,293,200,000 versus a total put value of 1,459,200,000 Combined total value = 121,752,400,000

Strike 440 has a total call value of 131,854,800,000 versus a total put value of 1,166,400,000 Combined total value = 133,021,200,000

Strike 442.5 has a total call value of 143,999,600,000 versus a total put value of 944,400,000 Combined total value = 144,944,000,000

Strike 445 has a total call value of 156,152,000,000 versus a total put value of 722,400,000 Combined total value = 156,874,400,000

Strike 447.5 has a total call value of 168,390,000,000 versus a total put value of 502,000,000 Combined total value = 168,892,000,000

Strike 450 has a total call value of 180,632,800,000 versus a total put value of 281,600,000 Combined total value = 180,914,400,000

Strike 452.5 has a total call value of 194,317,600,000 versus a total put value of 242,800,000 Combined total value = 194,560,400,000

Strike 455 has a total call value of 208,002,400,000 versus a total put value of 204,000,000 Combined total value = 208,206,400,000

Strike 457.5 has a total call value of 221,692,400,000 versus a total put value of 166,800,000 Combined total value = 221,859,200,000

Strike 460 has a total call value of 235,382,400,000 versus a total put value of 129,600,000 Combined total value = 235,512,000,000

Strike 462.5 has a total call value of 249,161,200,000 versus a total put value of 100,400,000 Combined total value = 249,261,600,000

Strike 465 has a total call value of 262,940,000,000 versus a total put value of 71,200,000 Combined total value = 263,011,200,000

Strike 467.5 has a total call value of 276,719,200,000 versus a total put value of 42,000,000 Combined total value = 276,761,200,000

Strike 470 has a total call value of 290,498,400,000 versus a total put value of 12,800,000 Combined total value = 290,511,200,000

Strike 472.5 has a total call value of 304,307,600,000 versus a total put value of 9,600,000 Combined total value = 304,317,200,000

Strike 475 has a total call value of 318,116,800,000 versus a total put value of 6,400,000 Combined total value = 318,123,200,000

Strike 477.5 has a total call value of 331,930,800,000 versus a total put value of 3,200,000 Combined total value = 331,934,000,000

Strike 480 has a total call value of 345,744,800,000 versus a total put value of 0 Combined total value = 345,744,800,000

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	1135.6	1140
ABB	5206.5	5200
ABCAPITAL	349.3	350
ADANIENSOL	988.9	990
ADANIENT	2239.5	2300
ADANIGREEN	1029.3	1020
ADANIPORTS	1487	1500
ALKEM	5638.5	5700
AMBER	6657.5	6800
AMBUJACEM	544.35	555
ANGELONE	2512.2	2600
APLAPOLLO	1741.7	1740
APOLLOHOSP	6973	7150
ASHOKLEY	165.52	160
ASIANPAINT	2778.8	2800
ASTRAL	1435.1	1460
AUBANK	996.3	960
AUROPHARMA	1189.3	1200
AXISBANK	1229.9	1240
BAJAJ-AUTO	8927.5	9000
BAJAJFINSV	2021.6	2060
BAJFINANCE	999.7	1020
BANDHANBNK	148.76	150
BANKBARODA	286.8	290
BANKINDIA	142.44	143
BDL	1333.9	1400
BEL	386.1	400
BHARATFORG	1410	1400
BHARTIARTL	2101.4	2100
BHEL	277	280
BIOCON	388.4	390
BLUESTARCO	1822.4	1780
BOSCHLTD	36045	36500
BPCL	367.15	365
BRITANNIA	6083	6000
BSE	2654.3	2700
CAMS	745.4	780
CANBK	150.39	150
CDSL	1484.5	1560
CGPOWER	678.55	680
CHOLAFIN	1690.9	1700
CIPLA	1493.7	1520
COALINDIA	384	384.75
COFORGE	1851.4	1840
COLPAL	2112.1	2180
CONCOR	497.5	520
CROMPTON	251.35	265
CUMMINSIND	4514.9	4500
CYIENT	1138.9	1160
DABUR	494.9	500
DALBHARAT	2062.1	2040
DELHIVERY	401.4	410
DIVISLAB	6314.5	6400
DIXON	13324	13750
DLF	682.7	710
DMART	3818	3900
DRREDDY	1278.2	1270
EICHERMOT	7154	7150
ETERNAL	285.35	295
EXIDEIND	362.45	375
FEDERALBNK	264.35	260
FORTIS	874.9	890
GAIL	169.18	175
GLENMARK	1952.9	1940
GMRAIRPORT	101.82	102
GODREJCP	1175.8	1160
GODREJPROP	2027.2	2080
GRASIM	2800.4	2800
HAL	4249.5	4500
HAVELLS	1400	1440
HCLTECH	1649.5	1660
HDFCAMC	2560	2620
HDFCBANK	983.1	1000
HDFCLIFE	751.25	770
HEROMOTOCO	5806.5	6000
HFCL	64.96	68
HINDALCO	846.85	820
HINDPETRO	468.6	460
HINDUNILVR	2270	2300
HINDZINC	582.25	550
HUDCO	209.07	220
ICICIBANK	1350.7	1370
ICICIGI	1934.6	1980
ICICIPRULI	632.45	630
IDEA	11.32	11
IDFCFIRSTB	83.87	82
IEX	141.33	145
IIFL	568.85	560
INDHOTEL	719.5	730
INDIANB	776.75	820
INDIGO	4974	5000
INDUSINDBK	836.45	850
INDUSTOWER	408.15	410
INFY	1600.1	1600
INOXWIND	126.74	130
IOC	168.33	166
IRCTC	668.7	690
IREDA	132.5	140
IRFC	111.6	116
ITC	400	405
JINDALSTEL	1006.3	1030
JIOFIN	293.4	305
JSWENERGY	481.9	490
JSWSTEEL	1084.5	1130
JUBLFOOD	554.05	580
KALYANKJIL	474.95	480
KAYNES	4186	4400
KEI	4100.4	4100
KFINTECH	1035.8	1060
KOTAKBANK	2169	2160
KPITTECH	1170.8	1200
LAURUSLABS	1010.2	1000
LICHSGFIN	526.35	550
LICI	847.15	870
LODHA	1069	1100
LT	4059.7	4040
LTF	302.9	302.5
LTIM	6245.5	6150
LUPIN	2116.4	2080
M&M	3601.2	3650
MANAPPURAM	285	280
MANKIND	2100	2200
MARICO	739.1	740
MARUTI	16412	16300
MAXHEALTH	1040.6	1100
MAZDOCK	2383.9	2500
MCX	10110	10100
MFSL	1648.8	1680
MOTHERSON	119.95	116
MPHASIS	2865	2900
MUTHOOTFIN	3802.3	3750
NATIONALUM	279.55	270
NAUKRI	1348.2	1360
NBCC	110.57	112
NCC	156.72	165
NESTLEIND	1228.8	1240
NHPC	75.72	78
NMDC	77.49	77
NTPC	320.5	325
NUVAMA	7250	7200
NYKAA	244.8	255
OBEROIRLTY	1628.6	1640
OFSS	7769.5	8000
OIL	402	410
ONGC	232.29	237.5
PAGEIND	36190	37000
PATANJALI	531.6	540
PAYTM	1273	1300
PERSISTENT	6289	6300
PETRONET	268.9	278
PFC	336.6	355
PGEL	566.35	560
PHOENIXLTD	1790.3	1740
PIDILITIND	1450.1	1480
PIIND	3211.5	3350
PNB	119.23	120
PNBHOUSING	907.65	910
POLICYBZR	1794.7	1840
POLYCAB	7105.5	7200
POWERGRID	262.55	270
POWERINDIA	19255	19500
PPLPHARMA	169.8	180
PRESTIGE	1612.9	1660
RBLBANK	297.45	310
RECLTD	334.2	350
RELIANCE	1540.8	1540
RVNL	308.5	315
SAIL	129.62	132
SAMMAANCAP	152	155
SBICARD	833.3	870
SBILIFE	2000	2020
SBIN	975.95	970
SHREECEM	26020	26500
SHRIRAMFIN	865.05	850
SIEMENS	3146.4	3200
SOLARINDS	11916	12500
SONACOMS	489.9	500
SRF	3016	2950
SUNPHARMA	1782.4	1800
SUPREMEIND	3330.7	3400
SUZLON	52.19	54
SYNGENE	652.4	650
TATACONSUM	1181.7	1170
TATAELXSI	4994	5100
TATAMOTORS	0	320
TATAPOWER	380.25	390
TATASTEEL	169.98	170
TATATECH	647.15	670
TCS	3216.6	3200
TECHM	1577.5	1540
TIINDIA	2626.4	2700
TITAGARH	782.2	800
TITAN	3905.9	3880
TMPV	347.35	360
TORNTPHARM	3742	3750
TORNTPOWER	1290	1300
TRENT	4063.1	4200
TVSMOTOR	3643.8	3600
ULTRACEMCO	11520	11700
UNIONBANK	153.47	155
UNITDSPR	1443	1440
UNOMINDA	1247.2	1280
UPL	745.75	750
VBL	478.65	470
VEDL	572.85	550
VOLTAS	1382.8	1380
WIPRO	260.55	255
YESBANK	21.58	22
ZYDUSLIFE	919.8	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 ITC

ITC

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