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

401.65 +1.25 (0.31%)

L: 400.25 H: 402.65

Max Pain - ITC

19 Dec 2025 02:47 PM IST

Live

Expiry

Max Pain for ITC is 405

Historical data for ITC-405-CE

LTP (405 CE)

1.65 -0.2

Open Interest

5827 -2

Historical data for ITC-405-PE

LTP (405 PE)

4.5 -0.9

Open Interest

1876 7

Strike 340 has a total call value of 0 versus a total put value of 185,691,200,000 Combined total value = 185,691,200,000

Strike 342.5 has a total call value of 0 versus a total put value of 177,664,400,000 Combined total value = 177,664,400,000

Strike 345 has a total call value of 0 versus a total put value of 169,637,600,000 Combined total value = 169,637,600,000

Strike 347.5 has a total call value of 0 versus a total put value of 161,612,000,000 Combined total value = 161,612,000,000

Strike 350 has a total call value of 0 versus a total put value of 153,586,400,000 Combined total value = 153,586,400,000

Strike 352.5 has a total call value of 0 versus a total put value of 145,593,200,000 Combined total value = 145,593,200,000

Strike 355 has a total call value of 0 versus a total put value of 137,600,000,000 Combined total value = 137,600,000,000

Strike 357.5 has a total call value of 0 versus a total put value of 129,619,600,000 Combined total value = 129,619,600,000

Strike 360 has a total call value of 0 versus a total put value of 121,639,200,000 Combined total value = 121,639,200,000

Strike 362.5 has a total call value of 400,000 versus a total put value of 113,689,200,000 Combined total value = 113,689,600,000

Strike 365 has a total call value of 800,000 versus a total put value of 105,739,200,000 Combined total value = 105,740,000,000

Strike 367.5 has a total call value of 1,200,000 versus a total put value of 97,803,200,000 Combined total value = 97,804,400,000

Strike 370 has a total call value of 1,600,000 versus a total put value of 89,867,200,000 Combined total value = 89,868,800,000

Strike 372.5 has a total call value of 3,600,000 versus a total put value of 82,068,000,000 Combined total value = 82,071,600,000

Strike 375 has a total call value of 5,600,000 versus a total put value of 74,272,800,000 Combined total value = 74,278,400,000

Strike 377.5 has a total call value of 10,000,000 versus a total put value of 66,995,200,000 Combined total value = 67,005,200,000

Strike 380 has a total call value of 17,200,000 versus a total put value of 60,188,400,000 Combined total value = 60,205,600,000

Strike 382.5 has a total call value of 131,600,000 versus a total put value of 53,810,000,000 Combined total value = 53,941,600,000

Strike 385 has a total call value of 246,000,000 versus a total put value of 47,462,000,000 Combined total value = 47,708,000,000

Strike 387.5 has a total call value of 369,200,000 versus a total put value of 41,366,800,000 Combined total value = 41,736,000,000

Strike 390 has a total call value of 496,800,000 versus a total put value of 35,420,400,000 Combined total value = 35,917,200,000

Strike 392.5 has a total call value of 726,400,000 versus a total put value of 30,326,400,000 Combined total value = 31,052,800,000

Strike 395 has a total call value of 974,000,000 versus a total put value of 25,337,600,000 Combined total value = 26,311,600,000

Strike 397.5 has a total call value of 1,304,800,000 versus a total put value of 20,786,800,000 Combined total value = 22,091,600,000

Strike 400 has a total call value of 1,676,800,000 versus a total put value of 16,413,200,000 Combined total value = 18,090,000,000

Strike 402.5 has a total call value of 3,348,800,000 versus a total put value of 13,264,400,000 Combined total value = 16,613,200,000

Strike 405 has a total call value of 5,556,800,000 versus a total put value of 10,550,800,000 Combined total value = 16,107,600,000

Strike 407.5 has a total call value of 10,095,600,000 versus a total put value of 8,587,600,000 Combined total value = 18,683,200,000

Strike 410 has a total call value of 14,972,800,000 versus a total put value of 6,883,200,000 Combined total value = 21,856,000,000

Strike 412.5 has a total call value of 22,582,000,000 versus a total put value of 5,897,200,000 Combined total value = 28,479,200,000

Strike 415 has a total call value of 30,484,800,000 versus a total put value of 5,007,200,000 Combined total value = 35,492,000,000

Strike 417.5 has a total call value of 39,234,800,000 versus a total put value of 4,280,400,000 Combined total value = 43,515,200,000

Strike 420 has a total call value of 48,064,800,000 versus a total put value of 3,564,800,000 Combined total value = 51,629,600,000

Strike 422.5 has a total call value of 57,979,200,000 versus a total put value of 3,246,800,000 Combined total value = 61,226,000,000

Strike 425 has a total call value of 67,962,000,000 versus a total put value of 2,938,000,000 Combined total value = 70,900,000,000

Strike 427.5 has a total call value of 78,197,200,000 versus a total put value of 2,629,200,000 Combined total value = 80,826,400,000

Strike 430 has a total call value of 88,468,000,000 versus a total put value of 2,321,600,000 Combined total value = 90,789,600,000

Strike 432.5 has a total call value of 99,331,200,000 versus a total put value of 2,014,000,000 Combined total value = 101,345,200,000

Strike 435 has a total call value of 110,264,400,000 versus a total put value of 1,708,800,000 Combined total value = 111,973,200,000

Strike 437.5 has a total call value of 121,515,200,000 versus a total put value of 1,421,600,000 Combined total value = 122,936,800,000

Strike 440 has a total call value of 132,999,600,000 versus a total put value of 1,134,400,000 Combined total value = 134,134,000,000

Strike 442.5 has a total call value of 145,051,200,000 versus a total put value of 916,000,000 Combined total value = 145,967,200,000

Strike 445 has a total call value of 157,110,400,000 versus a total put value of 697,600,000 Combined total value = 157,808,000,000

Strike 447.5 has a total call value of 169,252,400,000 versus a total put value of 480,800,000 Combined total value = 169,733,200,000

Strike 450 has a total call value of 181,398,800,000 versus a total put value of 264,000,000 Combined total value = 181,662,800,000

Strike 452.5 has a total call value of 194,857,600,000 versus a total put value of 228,000,000 Combined total value = 195,085,600,000

Strike 455 has a total call value of 208,316,400,000 versus a total put value of 192,000,000 Combined total value = 208,508,400,000

Strike 457.5 has a total call value of 221,780,400,000 versus a total put value of 157,600,000 Combined total value = 221,938,000,000

Strike 460 has a total call value of 235,244,400,000 versus a total put value of 123,200,000 Combined total value = 235,367,600,000

Strike 462.5 has a total call value of 248,796,800,000 versus a total put value of 95,600,000 Combined total value = 248,892,400,000

Strike 465 has a total call value of 262,349,200,000 versus a total put value of 68,000,000 Combined total value = 262,417,200,000

Strike 467.5 has a total call value of 275,902,000,000 versus a total put value of 40,400,000 Combined total value = 275,942,400,000

Strike 470 has a total call value of 289,454,800,000 versus a total put value of 12,800,000 Combined total value = 289,467,600,000

Strike 472.5 has a total call value of 303,032,800,000 versus a total put value of 9,600,000 Combined total value = 303,042,400,000

Strike 475 has a total call value of 316,610,800,000 versus a total put value of 6,400,000 Combined total value = 316,617,200,000

Strike 477.5 has a total call value of 330,193,600,000 versus a total put value of 3,200,000 Combined total value = 330,196,800,000

Strike 480 has a total call value of 343,776,400,000 versus a total put value of 0 Combined total value = 343,776,400,000

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	1137.8	1140
ABB	5151	5200
ABCAPITAL	348.2	345
ADANIENSOL	986.4	980
ADANIENT	2233.7	2300
ADANIGREEN	1022.5	1020
ADANIPORTS	1495.1	1500
ALKEM	5560	5650
AMBER	6652.5	6700
AMBUJACEM	539.5	550
ANGELONE	2516.3	2550
APLAPOLLO	1815	1780
APOLLOHOSP	6994.5	7100
ASHOKLEY	173.69	164
ASIANPAINT	2788.2	2800
ASTRAL	1420.5	1440
AUBANK	983.55	960
AUROPHARMA	1222.3	1220
AXISBANK	1232	1240
BAJAJ-AUTO	8980	9000
BAJAJFINSV	2040.1	2060
BAJFINANCE	1005.9	1020
BANDHANBNK	149.81	150
BANKBARODA	291.75	290
BANKINDIA	142.8	143
BDL	1365	1400
BEL	391.85	400
BHARATFORG	1436.1	1400
BHARTIARTL	2093.9	2100
BHEL	276.35	280
BIOCON	397.05	395
BLUESTARCO	1775.2	1780
BOSCHLTD	35690	36000
BPCL	363.45	365
BRITANNIA	6102.5	6000
BSE	2690	2700
CAMS	756.2	770
CANBK	148.16	150
CDSL	1496	1560
CGPOWER	671.65	680
CHOLAFIN	1639.1	1700
CIPLA	1512.3	1520
COALINDIA	385.05	385
COFORGE	1846.7	1840
COLPAL	2103.5	2160
CONCOR	499.8	520
CROMPTON	254.85	265
CUMMINSIND	4370.1	4400
CYIENT	1156.6	1140
DABUR	494.5	500
DALBHARAT	2016.8	2020
DELHIVERY	406.15	410
DIVISLAB	6449.5	6450
DIXON	13160	13500
DLF	687.35	710
DMART	3816.6	3900
DRREDDY	1275.1	1270
EICHERMOT	7204	7150
ETERNAL	286.7	295
EXIDEIND	362.6	370
FEDERALBNK	267.65	260
FORTIS	892.1	890
GAIL	169.19	175
GLENMARK	1984.5	1940
GMRAIRPORT	101.19	102
GODREJCP	1185.2	1160
GODREJPROP	2035.5	2060
GRASIM	2813	2800
HAL	4304.2	4500
HAVELLS	1414.4	1440
HCLTECH	1643.1	1660
HDFCAMC	2670	2660
HDFCBANK	987.5	995
HDFCLIFE	762.9	770
HEROMOTOCO	5756.5	5850
HFCL	63.91	67
HINDALCO	851.15	820
HINDPETRO	467.65	460
HINDUNILVR	2281.7	2300
HINDZINC	588.1	560
HUDCO	210.06	217.5
ICICIBANK	1355.6	1370
ICICIGI	1948.2	1960
ICICIPRULI	649.55	630
IDEA	11.89	11
IDFCFIRSTB	84.73	82
IEX	141.35	145
IIFL	560.45	560
INDHOTEL	731.7	730
INDIANB	779.6	810
INDIGO	5150	5100
INDUSINDBK	844.25	850
INDUSTOWER	413.8	410
INFY	1631.4	1600
INOXWIND	125.77	130
IOC	161.66	161
IRCTC	671	690
IREDA	132.72	140
IRFC	112.72	116
ITC	401.65	405
JINDALSTEL	986.4	1020
JIOFIN	297	305
JSWENERGY	477.15	490
JSWSTEEL	1077.5	1120
JUBLFOOD	563.8	580
KALYANKJIL	478.9	480
KAYNES	4163.5	4300
KEI	4244	4100
KFINTECH	1071.7	1080
KOTAKBANK	2161.8	2160
KPITTECH	1226.4	1200
LAURUSLABS	1041.8	1010
LICHSGFIN	532.25	550
LICI	847.75	870
LODHA	1085.8	1120
LT	4076.8	4040
LTF	299.1	300
LTIM	6196	6100
LUPIN	2122.9	2100
M&M	3607.4	3650
MANAPPURAM	290.25	282.5
MANKIND	2163.4	2200
MARICO	741.9	740
MARUTI	16450	16300
MAXHEALTH	1079	1100
MAZDOCK	2409	2500
MCX	10303	10100
MFSL	1689.2	1680
MOTHERSON	120.64	117
MPHASIS	2887.1	2900
MUTHOOTFIN	3762.9	3750
NATIONALUM	277.7	272.5
NAUKRI	1340.2	1360
NBCC	112.96	112
NCC	155.08	165
NESTLEIND	1242.6	1240
NHPC	76.43	78
NMDC	76.03	77
NTPC	318.85	325
NUVAMA	7139.5	7200
NYKAA	248.6	252.5
OBEROIRLTY	1667.9	1660
OFSS	7771.5	8000
OIL	406.85	410
ONGC	232.54	237.5
PAGEIND	35780	37000
PATANJALI	558.35	550
PAYTM	1323.8	1300
PERSISTENT	6352.5	6300
PETRONET	273.2	280
PFC	337.4	355
PGEL	580.2	560
PHOENIXLTD	1830	1760
PIDILITIND	1454	1480
PIIND	3230.1	3350
PNB	119.59	120
PNBHOUSING	918.4	900
POLICYBZR	1885.2	1860
POLYCAB	7422	7300
POWERGRID	263	270
POWERINDIA	18425	18500
PPLPHARMA	170.55	175
PRESTIGE	1618.7	1640
RBLBANK	300.5	305
RECLTD	338.1	350
RELIANCE	1566	1550
RVNL	314.9	315
SAIL	125.28	130
SAMMAANCAP	144.54	155
SBICARD	865.2	870
SBILIFE	2028.9	2020
SBIN	978.55	970
SHREECEM	25600	26000
SHRIRAMFIN	901.4	880
SIEMENS	3105.2	3150
SOLARINDS	11869	12500
SONACOMS	497	500
SRF	3080.5	3000
SUNPHARMA	1746.8	1760
SUPREMEIND	3374.1	3400
SUZLON	52.27	54
SYNGENE	650.95	650
TATACONSUM	1183.3	1180
TATAELXSI	5425.5	5300
TATAMOTORS	0	320
TATAPOWER	379.5	390
TATASTEEL	168.34	170
TATATECH	653.1	670
TCS	3296.5	3240
TECHM	1611.6	1560
TIINDIA	2626.8	2700
TITAGARH	781.2	800
TITAN	3935.5	3880
TMPV	351.5	360
TORNTPHARM	3788.9	3750
TORNTPOWER	1276.8	1300
TRENT	4067.3	4200
TVSMOTOR	3665.4	3600
ULTRACEMCO	11500	11600
UNIONBANK	153.7	155
UNITDSPR	1409.7	1430
UNOMINDA	1258	1280
UPL	748.65	750
VBL	469.45	470
VEDL	578.65	555
VOLTAS	1376.1	1380
WIPRO	264.35	260
YESBANK	21.63	22
ZYDUSLIFE	917.8	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

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ASHOKLEY

ASIANPAINT

ASTRAL

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BAJAJ-AUTO

BAJAJFINSV

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GOLD