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.

NATIONALUM

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.

National Aluminium Co Ltd

346.9 +13.40 (4.02%)

L: 328.85 H: 347.4

Max Pain - NATIONALUM

09 Jan 2026 02:55 PM IST

Expiry

Max-Pain

330

DFC

7D Avg

Reliability

14D Avg

Reliability

21D Avg

Reliability

Max Pain for NATIONALUM is 330

Historical data for NATIONALUM-330-CE

LTP (330 CE)

21.6 7.4

Open Interest

485 -10

Historical data for NATIONALUM-330-PE

LTP (330 PE)

4.7 -4.4

Open Interest

639 44

Strike 215 has a total call value of 0 versus a total put value of 379,680,937,500 Combined total value = 379,680,937,500

Strike 217.5 has a total call value of 0 versus a total put value of 370,121,250,000 Combined total value = 370,121,250,000

Strike 220 has a total call value of 0 versus a total put value of 360,561,562,500 Combined total value = 360,561,562,500

Strike 222.5 has a total call value of 0 versus a total put value of 351,002,812,500 Combined total value = 351,002,812,500

Strike 225 has a total call value of 0 versus a total put value of 341,444,062,500 Combined total value = 341,444,062,500

Strike 227.5 has a total call value of 9,375,000 versus a total put value of 331,891,875,000 Combined total value = 331,901,250,000

Strike 230 has a total call value of 18,750,000 versus a total put value of 322,339,687,500 Combined total value = 322,358,437,500

Strike 232.5 has a total call value of 61,875,000 versus a total put value of 312,819,375,000 Combined total value = 312,881,250,000

Strike 235 has a total call value of 105,000,000 versus a total put value of 303,299,062,500 Combined total value = 303,404,062,500

Strike 237.5 has a total call value of 149,062,500 versus a total put value of 293,778,750,000 Combined total value = 293,927,812,500

Strike 240 has a total call value of 193,125,000 versus a total put value of 284,258,437,500 Combined total value = 284,451,562,500

Strike 242.5 has a total call value of 243,750,000 versus a total put value of 274,800,000,000 Combined total value = 275,043,750,000

Strike 245 has a total call value of 294,375,000 versus a total put value of 265,344,375,000 Combined total value = 265,638,750,000

Strike 247.5 has a total call value of 345,937,500 versus a total put value of 255,899,062,500 Combined total value = 256,245,000,000

Strike 250 has a total call value of 411,562,500 versus a total put value of 246,456,562,500 Combined total value = 246,868,125,000

Strike 252.5 has a total call value of 515,625,000 versus a total put value of 237,201,562,500 Combined total value = 237,717,187,500

Strike 255 has a total call value of 619,687,500 versus a total put value of 227,946,562,500 Combined total value = 228,566,250,000

Strike 257.5 has a total call value of 728,437,500 versus a total put value of 218,701,875,000 Combined total value = 219,430,312,500

Strike 260 has a total call value of 837,187,500 versus a total put value of 209,468,437,500 Combined total value = 210,305,625,000

Strike 262.5 has a total call value of 975,937,500 versus a total put value of 200,432,812,500 Combined total value = 201,408,750,000

Strike 265 has a total call value of 1,114,687,500 versus a total put value of 191,478,750,000 Combined total value = 192,593,437,500

Strike 267.5 has a total call value of 1,255,312,500 versus a total put value of 182,552,812,500 Combined total value = 183,808,125,000

Strike 270 has a total call value of 1,395,937,500 versus a total put value of 173,666,250,000 Combined total value = 175,062,187,500

Strike 272.5 has a total call value of 1,594,687,500 versus a total put value of 165,029,062,500 Combined total value = 166,623,750,000

Strike 275 has a total call value of 1,793,437,500 versus a total put value of 156,399,375,000 Combined total value = 158,192,812,500

Strike 277.5 has a total call value of 2,019,375,000 versus a total put value of 147,906,562,500 Combined total value = 149,925,937,500

Strike 280 has a total call value of 2,247,187,500 versus a total put value of 139,423,125,000 Combined total value = 141,670,312,500

Strike 282.5 has a total call value of 2,805,000,000 versus a total put value of 131,394,375,000 Combined total value = 134,199,375,000

Strike 285 has a total call value of 3,368,437,500 versus a total put value of 123,396,562,500 Combined total value = 126,765,000,000

Strike 287.5 has a total call value of 3,952,500,000 versus a total put value of 115,479,375,000 Combined total value = 119,431,875,000

Strike 290 has a total call value of 4,545,937,500 versus a total put value of 107,582,812,500 Combined total value = 112,128,750,000

Strike 292.5 has a total call value of 5,261,250,000 versus a total put value of 100,104,375,000 Combined total value = 105,365,625,000

Strike 295 has a total call value of 5,981,250,000 versus a total put value of 92,674,687,500 Combined total value = 98,655,937,500

Strike 297.5 has a total call value of 6,819,375,000 versus a total put value of 85,423,125,000 Combined total value = 92,242,500,000

Strike 300 has a total call value of 7,666,875,000 versus a total put value of 78,251,250,000 Combined total value = 85,918,125,000

Strike 302.5 has a total call value of 8,821,875,000 versus a total put value of 72,078,750,000 Combined total value = 80,900,625,000

Strike 305 has a total call value of 9,994,687,500 versus a total put value of 65,949,375,000 Combined total value = 75,944,062,500

Strike 307.5 has a total call value of 11,239,687,500 versus a total put value of 59,978,437,500 Combined total value = 71,218,125,000

Strike 310 has a total call value of 12,511,875,000 versus a total put value of 54,150,000,000 Combined total value = 66,661,875,000

Strike 312.5 has a total call value of 14,064,375,000 versus a total put value of 49,010,625,000 Combined total value = 63,075,000,000

Strike 315 has a total call value of 15,745,312,500 versus a total put value of 43,960,312,500 Combined total value = 59,705,625,000

Strike 317.5 has a total call value of 17,607,187,500 versus a total put value of 39,206,250,000 Combined total value = 56,813,437,500

Strike 320 has a total call value of 19,537,500,000 versus a total put value of 34,538,437,500 Combined total value = 54,075,937,500

Strike 322.5 has a total call value of 21,787,500,000 versus a total put value of 30,645,000,000 Combined total value = 52,432,500,000

Strike 325 has a total call value of 24,078,750,000 versus a total put value of 26,825,625,000 Combined total value = 50,904,375,000

Strike 327.5 has a total call value of 26,549,062,500 versus a total put value of 23,339,062,500 Combined total value = 49,888,125,000

Strike 330 has a total call value of 29,093,437,500 versus a total put value of 19,993,125,000 Combined total value = 49,086,562,500

Strike 332.5 has a total call value of 32,092,500,000 versus a total put value of 17,246,250,000 Combined total value = 49,338,750,000

Strike 335 has a total call value of 35,169,375,000 versus a total put value of 14,596,875,000 Combined total value = 49,766,250,000

Strike 337.5 has a total call value of 38,411,250,000 versus a total put value of 12,169,687,500 Combined total value = 50,580,937,500

Strike 340 has a total call value of 41,716,875,000 versus a total put value of 9,825,000,000 Combined total value = 51,541,875,000

Strike 342.5 has a total call value of 45,699,375,000 versus a total put value of 8,139,375,000 Combined total value = 53,838,750,000

Strike 345 has a total call value of 49,744,687,500 versus a total put value of 6,538,125,000 Combined total value = 56,282,812,500

Strike 347.5 has a total call value of 54,189,375,000 versus a total put value of 5,196,562,500 Combined total value = 59,385,937,500

Strike 350 has a total call value of 58,752,187,500 versus a total put value of 3,915,000,000 Combined total value = 62,667,187,500

Strike 352.5 has a total call value of 64,276,875,000 versus a total put value of 2,934,375,000 Combined total value = 67,211,250,000

Strike 355 has a total call value of 69,972,187,500 versus a total put value of 1,993,125,000 Combined total value = 71,965,312,500

Strike 357.5 has a total call value of 76,212,187,500 versus a total put value of 1,230,000,000 Combined total value = 77,442,187,500

Strike 360 has a total call value of 82,546,875,000 versus a total put value of 495,937,500 Combined total value = 83,042,812,500

Strike 362.5 has a total call value of 90,448,125,000 versus a total put value of 380,625,000 Combined total value = 90,828,750,000

Strike 365 has a total call value of 98,404,687,500 versus a total put value of 270,937,500 Combined total value = 98,675,625,000

Strike 367.5 has a total call value of 106,557,187,500 versus a total put value of 189,375,000 Combined total value = 106,746,562,500

Strike 370 has a total call value of 114,765,937,500 versus a total put value of 114,375,000 Combined total value = 114,880,312,500

Strike 372.5 has a total call value of 123,726,562,500 versus a total put value of 62,812,500 Combined total value = 123,789,375,000

Strike 375 has a total call value of 132,787,500,000 versus a total put value of 18,750,000 Combined total value = 132,806,250,000

Strike 377.5 has a total call value of 142,594,687,500 versus a total put value of 6,562,500 Combined total value = 142,601,250,000

Strike 380 has a total call value of 152,564,062,500 versus a total put value of 3,750,000 Combined total value = 152,567,812,500

Strike 382.5 has a total call value of 163,617,187,500 versus a total put value of 2,812,500 Combined total value = 163,620,000,000

Strike 385 has a total call value of 174,722,812,500 versus a total put value of 1,875,000 Combined total value = 174,724,687,500

Strike 387.5 has a total call value of 185,955,937,500 versus a total put value of 937,500 Combined total value = 185,956,875,000

Strike 390 has a total call value of 197,218,125,000 versus a total put value of 0 Combined total value = 197,218,125,000

Strike 392.5 has a total call value of 208,888,125,000 versus a total put value of 0 Combined total value = 208,888,125,000

Strike 395 has a total call value of 220,642,500,000 versus a total put value of 0 Combined total value = 220,642,500,000

Max-Pain Table for Stocks

Max-Pain Table Expiry

Commodity Max-Pain Table

Index Max-Pain Table

LTP > Max Pain Bearish

LTP < Max Pain Bullish

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.

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