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.

KAYNES

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.

Kaynes Technology Ind Ltd

4223.5 +37.00 (0.88%)

L: 4202 H: 4317

Max Pain - KAYNES

17 Dec 2025 09:28 AM IST

Live

Expiry

Max Pain for KAYNES is 4400

Historical data for KAYNES-4400-CE

LTP (4400 CE)

97.95 6.85

Open Interest

3400 151

Historical data for KAYNES-4400-PE

LTP (4400 PE)

263.65 -28.95

Open Interest

1394 16

Strike 2800 has a total call value of 0 versus a total put value of 498,991,000,000 Combined total value = 498,991,000,000

Strike 2900 has a total call value of 11,000,000 versus a total put value of 468,379,000,000 Combined total value = 468,390,000,000

Strike 3000 has a total call value of 22,000,000 versus a total put value of 437,767,000,000 Combined total value = 437,789,000,000

Strike 3100 has a total call value of 33,000,000 versus a total put value of 408,603,000,000 Combined total value = 408,636,000,000

Strike 3200 has a total call value of 45,000,000 versus a total put value of 379,582,000,000 Combined total value = 379,627,000,000

Strike 3300 has a total call value of 61,000,000 versus a total put value of 350,909,000,000 Combined total value = 350,970,000,000

Strike 3400 has a total call value of 78,000,000 versus a total put value of 322,573,000,000 Combined total value = 322,651,000,000

Strike 3500 has a total call value of 98,000,000 versus a total put value of 294,972,000,000 Combined total value = 295,070,000,000

Strike 3600 has a total call value of 147,000,000 versus a total put value of 268,753,000,000 Combined total value = 268,900,000,000

Strike 3700 has a total call value of 217,000,000 versus a total put value of 243,442,000,000 Combined total value = 243,659,000,000

Strike 3800 has a total call value of 359,000,000 versus a total put value of 219,313,000,000 Combined total value = 219,672,000,000

Strike 3900 has a total call value of 1,095,000,000 versus a total put value of 197,080,000,000 Combined total value = 198,175,000,000

Strike 4000 has a total call value of 2,162,000,000 versus a total put value of 175,882,000,000 Combined total value = 178,044,000,000

Strike 4100 has a total call value of 5,805,000,000 versus a total put value of 158,632,000,000 Combined total value = 164,437,000,000

Strike 4200 has a total call value of 10,061,000,000 versus a total put value of 142,584,000,000 Combined total value = 152,645,000,000

Strike 4300 has a total call value of 16,890,000,000 versus a total put value of 128,519,000,000 Combined total value = 145,409,000,000

Strike 4400 has a total call value of 28,275,000,000 versus a total put value of 115,351,000,000 Combined total value = 143,626,000,000

Strike 4500 has a total call value of 43,060,000,000 versus a total put value of 103,577,000,000 Combined total value = 146,637,000,000

Strike 4600 has a total call value of 62,995,000,000 versus a total put value of 92,788,000,000 Combined total value = 155,783,000,000

Strike 4700 has a total call value of 85,942,000,000 versus a total put value of 82,747,000,000 Combined total value = 168,689,000,000

Strike 4800 has a total call value of 112,112,000,000 versus a total put value of 73,106,000,000 Combined total value = 185,218,000,000

Strike 4900 has a total call value of 142,048,000,000 versus a total put value of 64,322,000,000 Combined total value = 206,370,000,000

Strike 5000 has a total call value of 174,146,000,000 versus a total put value of 55,932,000,000 Combined total value = 230,078,000,000

Strike 5100 has a total call value of 215,087,000,000 versus a total put value of 49,090,000,000 Combined total value = 264,177,000,000

Strike 5200 has a total call value of 258,743,000,000 versus a total put value of 42,616,000,000 Combined total value = 301,359,000,000

Strike 5300 has a total call value of 305,327,000,000 versus a total put value of 36,704,000,000 Combined total value = 342,031,000,000

Strike 5400 has a total call value of 353,821,000,000 versus a total put value of 31,449,000,000 Combined total value = 385,270,000,000

Strike 5500 has a total call value of 404,665,000,000 versus a total put value of 26,735,000,000 Combined total value = 431,400,000,000

Strike 5600 has a total call value of 459,582,000,000 versus a total put value of 22,673,000,000 Combined total value = 482,255,000,000

Strike 5700 has a total call value of 516,138,000,000 versus a total put value of 18,847,000,000 Combined total value = 534,985,000,000

Strike 5800 has a total call value of 573,739,000,000 versus a total put value of 15,276,000,000 Combined total value = 589,015,000,000

Strike 5900 has a total call value of 633,093,000,000 versus a total put value of 12,339,000,000 Combined total value = 645,432,000,000

Strike 6000 has a total call value of 694,443,000,000 versus a total put value of 9,822,000,000 Combined total value = 704,265,000,000

Strike 6100 has a total call value of 763,074,000,000 versus a total put value of 8,095,000,000 Combined total value = 771,169,000,000

Strike 6200 has a total call value of 832,506,000,000 versus a total put value of 6,702,000,000 Combined total value = 839,208,000,000

Strike 6300 has a total call value of 902,472,000,000 versus a total put value of 5,466,000,000 Combined total value = 907,938,000,000

Strike 6400 has a total call value of 973,922,000,000 versus a total put value of 4,338,000,000 Combined total value = 978,260,000,000

Strike 6500 has a total call value of 1,045,738,000,000 versus a total put value of 3,327,000,000 Combined total value = 1,049,065,000,000

Strike 6600 has a total call value of 1,119,105,000,000 versus a total put value of 2,855,000,000 Combined total value = 1,121,960,000,000

Strike 6700 has a total call value of 1,192,821,000,000 versus a total put value of 2,410,000,000 Combined total value = 1,195,231,000,000

Strike 6800 has a total call value of 1,266,735,000,000 versus a total put value of 2,009,000,000 Combined total value = 1,268,744,000,000

Strike 6900 has a total call value of 1,341,064,000,000 versus a total put value of 1,641,000,000 Combined total value = 1,342,705,000,000

Strike 7000 has a total call value of 1,415,393,000,000 versus a total put value of 1,281,000,000 Combined total value = 1,416,674,000,000

Strike 7100 has a total call value of 1,492,591,000,000 versus a total put value of 1,008,000,000 Combined total value = 1,493,599,000,000

Strike 7200 has a total call value of 1,569,789,000,000 versus a total put value of 736,000,000 Combined total value = 1,570,525,000,000

Strike 7300 has a total call value of 1,647,288,000,000 versus a total put value of 575,000,000 Combined total value = 1,647,863,000,000

Strike 7400 has a total call value of 1,724,787,000,000 versus a total put value of 417,000,000 Combined total value = 1,725,204,000,000

Strike 7500 has a total call value of 1,802,286,000,000 versus a total put value of 345,000,000 Combined total value = 1,802,631,000,000

Strike 7600 has a total call value of 1,879,785,000,000 versus a total put value of 276,000,000 Combined total value = 1,880,061,000,000

Strike 7700 has a total call value of 1,957,284,000,000 versus a total put value of 207,000,000 Combined total value = 1,957,491,000,000

Strike 7800 has a total call value of 2,034,783,000,000 versus a total put value of 138,000,000 Combined total value = 2,034,921,000,000

Strike 7900 has a total call value of 2,112,282,000,000 versus a total put value of 69,000,000 Combined total value = 2,112,351,000,000

Strike 8000 has a total call value of 2,189,781,000,000 versus a total put value of 0 Combined total value = 2,189,781,000,000

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	1141.8	1140
ABB	5239.5	5200
ABCAPITAL	352.65	350
ADANIENSOL	991.75	990
ADANIENT	2250.9	2300
ADANIGREEN	1025.5	1020
ADANIPORTS	1499.4	1500
ALKEM	5685.5	5700
AMBER	6779.5	6800
AMBUJACEM	549.2	555
ANGELONE	2539.9	2600
APLAPOLLO	1732.6	1740
APOLLOHOSP	7079	7200
ASHOKLEY	166.54	160
ASIANPAINT	2798.9	2800
ASTRAL	1456.9	1460
AUBANK	993	960
AUROPHARMA	1176.3	1200
AXISBANK	1233.7	1240
BAJAJ-AUTO	8992	9000
BAJAJFINSV	2041.7	2060
BAJFINANCE	1010.6	1020
BANDHANBNK	149.84	150
BANKBARODA	284.9	290
BANKINDIA	141.98	143
BDL	1351.1	1400
BEL	387.6	400
BHARATFORG	1412.5	1400
BHARTIARTL	2112.1	2100
BHEL	279.75	280
BIOCON	387.05	390
BLUESTARCO	1813.4	1780
BOSCHLTD	36270	36500
BPCL	371.35	362.5
BRITANNIA	6085	6000
BSE	2641	2700
CAMS	752.4	780
CANBK	149.67	148
CDSL	1500.9	1560
CGPOWER	688.45	680
CHOLAFIN	1730.7	1700
CIPLA	1498.1	1520
COALINDIA	382.5	384.75
COFORGE	1883	1840
COLPAL	2133.8	2180
CONCOR	500.95	520
CROMPTON	252.75	265
CUMMINSIND	4502.6	4500
CYIENT	1143.7	1160
DABUR	496.7	505
DALBHARAT	2069.3	2040
DELHIVERY	401.3	410
DIVISLAB	6359	6400
DIXON	13519	13750
DLF	688.5	720
DMART	3841.9	3900
DRREDDY	1274.4	1270
EICHERMOT	7157.5	7100
ETERNAL	288.65	295
EXIDEIND	364.4	375
FEDERALBNK	262.65	260
FORTIS	877.8	890
GAIL	170.36	175
GLENMARK	1956.9	1940
GMRAIRPORT	103.8	102
GODREJCP	1176.3	1160
GODREJPROP	2033	2080
GRASIM	2793.4	2800
HAL	4265.3	4500
HAVELLS	1403.9	1440
HCLTECH	1658.9	1660
HDFCAMC	2593.9	2620
HDFCBANK	990.6	1000
HDFCLIFE	761.85	770
HEROMOTOCO	5939	6050
HFCL	65.55	68
HINDALCO	848.2	820
HINDPETRO	470.75	460
HINDUNILVR	2282.7	2300
HINDZINC	581.45	545
HUDCO	211.11	220
ICICIBANK	1353.5	1370
ICICIGI	1956.4	1980
ICICIPRULI	639	630
IDEA	11.3	11
IDFCFIRSTB	83.84	81
IEX	140.52	145
IIFL	573.15	560
INDHOTEL	726	740
INDIANB	777.9	820
INDIGO	4962	5000
INDUSINDBK	842.55	850
INDUSTOWER	408.2	410
INFY	1598.4	1600
INOXWIND	126.44	130
IOC	168.73	166
IRCTC	671.1	690
IREDA	133.88	140
IRFC	112.16	116
ITC	402.3	405
JINDALSTEL	1009.9	1020
JIOFIN	295.5	305
JSWENERGY	478.55	490
JSWSTEEL	1092.5	1130
JUBLFOOD	561.7	580
KALYANKJIL	480.3	480
KAYNES	4223.5	4400
KEI	4075.7	4100
KFINTECH	1034.1	1060
KOTAKBANK	2182.5	2160
KPITTECH	1172.9	1200
LAURUSLABS	1017.2	1000
LICHSGFIN	529.45	550
LICI	856.9	880
LODHA	1083.1	1100
LT	4069.6	4040
LTF	305.95	302.5
LTIM	6265.5	6150
LUPIN	2119	2080
M&M	3633	3650
MANAPPURAM	286.75	280
MANKIND	2106.9	2200
MARICO	736.15	740
MARUTI	16463	16300
MAXHEALTH	1069.2	1100
MAZDOCK	2412.7	2550
MCX	10209	10100
MFSL	1677.9	1700
MOTHERSON	119.91	116
MPHASIS	2888.2	2900
MUTHOOTFIN	3840.7	3750
NATIONALUM	279.8	270
NAUKRI	1358.7	1360
NBCC	111.44	112
NCC	157.41	167.5
NESTLEIND	1235.5	1240
NHPC	75.54	78
NMDC	77.26	77
NTPC	321.5	325
NUVAMA	7252.5	7200
NYKAA	248.15	255
OBEROIRLTY	1637	1640
OFSS	7845	8000
OIL	400.5	410
ONGC	232.65	240
PAGEIND	36340	37500
PATANJALI	534.35	545
PAYTM	1286.8	1300
PERSISTENT	6300	6300
PETRONET	267.85	277.5
PFC	337.2	355
PGEL	565.9	560
PHOENIXLTD	1786.7	1740
PIDILITIND	1465.1	1480
PIIND	3232.5	3350
PNB	118.22	120
PNBHOUSING	913.3	910
POLICYBZR	1809.5	1840
POLYCAB	7095	7300
POWERGRID	260.65	270
POWERINDIA	19575	19500
PPLPHARMA	169.02	180
PRESTIGE	1618.6	1660
RBLBANK	301.15	310
RECLTD	336.2	350
RELIANCE	1548.3	1540
RVNL	309.8	315
SAIL	130.35	133
SAMMAANCAP	147.02	155
SBICARD	849.55	870
SBILIFE	2042.3	2020
SBIN	973.75	970
SHREECEM	26085	26500
SHRIRAMFIN	867.9	850
SIEMENS	3158.9	3200
SOLARINDS	11966	12500
SONACOMS	486.7	500
SRF	3002.1	2950
SUNPHARMA	1778.7	1800
SUPREMEIND	3391.2	3400
SUZLON	52.49	54
SYNGENE	645.2	650
TATACONSUM	1173.6	1170
TATAELXSI	5009.5	5100
TATAMOTORS	0	320
TATAPOWER	381	390
TATASTEEL	171.14	170
TATATECH	650.7	670
TCS	3226.1	3200
TECHM	1581.1	1540
TIINDIA	2639.4	2700
TITAGARH	785	800
TITAN	3925.9	3880
TMPV	348.45	360
TORNTPHARM	3739.5	3800
TORNTPOWER	1284.9	1300
TRENT	4097.1	4200
TVSMOTOR	3652.5	3600
ULTRACEMCO	11563	11700
UNIONBANK	154.1	152.5
UNITDSPR	1447.7	1440
UNOMINDA	1267.4	1280
UPL	751.65	750
VBL	473.55	470
VEDL	574.45	550
VOLTAS	1390.2	1380
WIPRO	260.19	255
YESBANK	21.61	22
ZYDUSLIFE	919.75	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 KAYNES

KAYNES

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