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.

SILVER

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.

Silver

223730 +4077.00 (1.86%)

L: 218500 H: 224430

Max Pain - SILVER

25 Dec 2025 11:15 AM IST

Expiry

Max Pain for SILVER is 200000

Historical data for SILVER-200000-CE

LTP (200000 CE)

27325 215.5

Open Interest

206 27

Historical data for SILVER-200000-PE

LTP (200000 PE)

3810 -104

Open Interest

477 66

Strike 150000 has a total call value of 0 versus a total put value of 368,489,250,000 Combined total value = 368,489,250,000

Strike 150250 has a total call value of 0 versus a total put value of 366,417,000,000 Combined total value = 366,417,000,000

Strike 150500 has a total call value of 0 versus a total put value of 364,344,750,000 Combined total value = 364,344,750,000

Strike 150750 has a total call value of 0 versus a total put value of 362,272,500,000 Combined total value = 362,272,500,000

Strike 151000 has a total call value of 0 versus a total put value of 360,200,250,000 Combined total value = 360,200,250,000

Strike 151250 has a total call value of 0 versus a total put value of 358,128,000,000 Combined total value = 358,128,000,000

Strike 151500 has a total call value of 0 versus a total put value of 356,055,750,000 Combined total value = 356,055,750,000

Strike 151750 has a total call value of 0 versus a total put value of 353,983,500,000 Combined total value = 353,983,500,000

Strike 152000 has a total call value of 0 versus a total put value of 351,911,250,000 Combined total value = 351,911,250,000

Strike 152250 has a total call value of 0 versus a total put value of 349,839,000,000 Combined total value = 349,839,000,000

Strike 152500 has a total call value of 0 versus a total put value of 347,766,750,000 Combined total value = 347,766,750,000

Strike 152750 has a total call value of 0 versus a total put value of 345,694,500,000 Combined total value = 345,694,500,000

Strike 153000 has a total call value of 0 versus a total put value of 343,622,250,000 Combined total value = 343,622,250,000

Strike 153250 has a total call value of 0 versus a total put value of 341,550,000,000 Combined total value = 341,550,000,000

Strike 153500 has a total call value of 0 versus a total put value of 339,477,750,000 Combined total value = 339,477,750,000

Strike 153750 has a total call value of 0 versus a total put value of 337,405,500,000 Combined total value = 337,405,500,000

Strike 154000 has a total call value of 0 versus a total put value of 335,333,250,000 Combined total value = 335,333,250,000

Strike 154250 has a total call value of 0 versus a total put value of 333,261,000,000 Combined total value = 333,261,000,000

Strike 154500 has a total call value of 0 versus a total put value of 331,188,750,000 Combined total value = 331,188,750,000

Strike 154750 has a total call value of 0 versus a total put value of 329,116,500,000 Combined total value = 329,116,500,000

Strike 155000 has a total call value of 0 versus a total put value of 327,044,250,000 Combined total value = 327,044,250,000

Strike 155250 has a total call value of 0 versus a total put value of 324,972,000,000 Combined total value = 324,972,000,000

Strike 155500 has a total call value of 0 versus a total put value of 322,899,750,000 Combined total value = 322,899,750,000

Strike 155750 has a total call value of 0 versus a total put value of 320,827,500,000 Combined total value = 320,827,500,000

Strike 156000 has a total call value of 0 versus a total put value of 318,755,250,000 Combined total value = 318,755,250,000

Strike 156250 has a total call value of 0 versus a total put value of 316,683,000,000 Combined total value = 316,683,000,000

Strike 156500 has a total call value of 0 versus a total put value of 314,610,750,000 Combined total value = 314,610,750,000

Strike 156750 has a total call value of 0 versus a total put value of 312,538,500,000 Combined total value = 312,538,500,000

Strike 157000 has a total call value of 0 versus a total put value of 310,466,250,000 Combined total value = 310,466,250,000

Strike 157250 has a total call value of 0 versus a total put value of 308,394,000,000 Combined total value = 308,394,000,000

Strike 157500 has a total call value of 0 versus a total put value of 306,321,750,000 Combined total value = 306,321,750,000

Strike 157750 has a total call value of 0 versus a total put value of 304,249,500,000 Combined total value = 304,249,500,000

Strike 158000 has a total call value of 0 versus a total put value of 302,177,250,000 Combined total value = 302,177,250,000

Strike 158250 has a total call value of 0 versus a total put value of 300,105,000,000 Combined total value = 300,105,000,000

Strike 158500 has a total call value of 0 versus a total put value of 298,032,750,000 Combined total value = 298,032,750,000

Strike 158750 has a total call value of 0 versus a total put value of 295,960,500,000 Combined total value = 295,960,500,000

Strike 159000 has a total call value of 0 versus a total put value of 293,888,250,000 Combined total value = 293,888,250,000

Strike 159250 has a total call value of 0 versus a total put value of 291,816,000,000 Combined total value = 291,816,000,000

Strike 159500 has a total call value of 0 versus a total put value of 289,743,750,000 Combined total value = 289,743,750,000

Strike 159750 has a total call value of 0 versus a total put value of 287,671,500,000 Combined total value = 287,671,500,000

Strike 160000 has a total call value of 0 versus a total put value of 285,599,250,000 Combined total value = 285,599,250,000

Strike 160250 has a total call value of 10,500,000 versus a total put value of 283,556,250,000 Combined total value = 283,566,750,000

Strike 160500 has a total call value of 21,000,000 versus a total put value of 281,513,250,000 Combined total value = 281,534,250,000

Strike 160750 has a total call value of 31,500,000 versus a total put value of 279,470,250,000 Combined total value = 279,501,750,000

Strike 161000 has a total call value of 42,000,000 versus a total put value of 277,427,250,000 Combined total value = 277,469,250,000

Strike 161250 has a total call value of 52,500,000 versus a total put value of 275,384,250,000 Combined total value = 275,436,750,000

Strike 161500 has a total call value of 63,000,000 versus a total put value of 273,341,250,000 Combined total value = 273,404,250,000

Strike 161750 has a total call value of 73,500,000 versus a total put value of 271,298,250,000 Combined total value = 271,371,750,000

Strike 162000 has a total call value of 84,000,000 versus a total put value of 269,255,250,000 Combined total value = 269,339,250,000

Strike 162250 has a total call value of 94,500,000 versus a total put value of 267,212,250,000 Combined total value = 267,306,750,000

Strike 162500 has a total call value of 105,000,000 versus a total put value of 265,169,250,000 Combined total value = 265,274,250,000

Strike 162750 has a total call value of 115,500,000 versus a total put value of 263,126,250,000 Combined total value = 263,241,750,000

Strike 163000 has a total call value of 126,000,000 versus a total put value of 261,083,250,000 Combined total value = 261,209,250,000

Strike 163250 has a total call value of 136,500,000 versus a total put value of 259,040,250,000 Combined total value = 259,176,750,000

Strike 163500 has a total call value of 147,000,000 versus a total put value of 256,997,250,000 Combined total value = 257,144,250,000

Strike 163750 has a total call value of 157,500,000 versus a total put value of 254,954,250,000 Combined total value = 255,111,750,000

Strike 164000 has a total call value of 168,000,000 versus a total put value of 252,911,250,000 Combined total value = 253,079,250,000

Strike 164250 has a total call value of 178,500,000 versus a total put value of 250,868,250,000 Combined total value = 251,046,750,000

Strike 164500 has a total call value of 189,000,000 versus a total put value of 248,825,250,000 Combined total value = 249,014,250,000

Strike 164750 has a total call value of 199,500,000 versus a total put value of 246,782,250,000 Combined total value = 246,981,750,000

Strike 165000 has a total call value of 210,000,000 versus a total put value of 244,739,250,000 Combined total value = 244,949,250,000

Strike 165250 has a total call value of 220,500,000 versus a total put value of 242,696,250,000 Combined total value = 242,916,750,000

Strike 165500 has a total call value of 231,000,000 versus a total put value of 240,653,250,000 Combined total value = 240,884,250,000

Strike 165750 has a total call value of 241,500,000 versus a total put value of 238,610,250,000 Combined total value = 238,851,750,000

Strike 166000 has a total call value of 252,000,000 versus a total put value of 236,567,250,000 Combined total value = 236,819,250,000

Strike 166250 has a total call value of 262,500,000 versus a total put value of 234,524,250,000 Combined total value = 234,786,750,000

Strike 166500 has a total call value of 273,000,000 versus a total put value of 232,481,250,000 Combined total value = 232,754,250,000

Strike 166750 has a total call value of 283,500,000 versus a total put value of 230,438,250,000 Combined total value = 230,721,750,000

Strike 167000 has a total call value of 294,000,000 versus a total put value of 228,395,250,000 Combined total value = 228,689,250,000

Strike 167250 has a total call value of 304,500,000 versus a total put value of 226,352,250,000 Combined total value = 226,656,750,000

Strike 167500 has a total call value of 315,000,000 versus a total put value of 224,309,250,000 Combined total value = 224,624,250,000

Strike 167750 has a total call value of 325,500,000 versus a total put value of 222,266,250,000 Combined total value = 222,591,750,000

Strike 168000 has a total call value of 336,000,000 versus a total put value of 220,223,250,000 Combined total value = 220,559,250,000

Strike 168250 has a total call value of 346,500,000 versus a total put value of 218,180,250,000 Combined total value = 218,526,750,000

Strike 168500 has a total call value of 357,000,000 versus a total put value of 216,137,250,000 Combined total value = 216,494,250,000

Strike 168750 has a total call value of 367,500,000 versus a total put value of 214,094,250,000 Combined total value = 214,461,750,000

Strike 169000 has a total call value of 378,000,000 versus a total put value of 212,051,250,000 Combined total value = 212,429,250,000

Strike 169250 has a total call value of 388,500,000 versus a total put value of 210,008,250,000 Combined total value = 210,396,750,000

Strike 169500 has a total call value of 399,000,000 versus a total put value of 207,965,250,000 Combined total value = 208,364,250,000

Strike 169750 has a total call value of 409,500,000 versus a total put value of 205,922,250,000 Combined total value = 206,331,750,000

Strike 170000 has a total call value of 420,000,000 versus a total put value of 203,879,250,000 Combined total value = 204,299,250,000

Strike 170250 has a total call value of 449,250,000 versus a total put value of 201,945,750,000 Combined total value = 202,395,000,000

Strike 170500 has a total call value of 478,500,000 versus a total put value of 200,012,250,000 Combined total value = 200,490,750,000

Strike 170750 has a total call value of 507,750,000 versus a total put value of 198,078,750,000 Combined total value = 198,586,500,000

Strike 171000 has a total call value of 537,000,000 versus a total put value of 196,145,250,000 Combined total value = 196,682,250,000

Strike 171250 has a total call value of 566,250,000 versus a total put value of 194,211,750,000 Combined total value = 194,778,000,000

Strike 171500 has a total call value of 595,500,000 versus a total put value of 192,278,250,000 Combined total value = 192,873,750,000

Strike 171750 has a total call value of 624,750,000 versus a total put value of 190,344,750,000 Combined total value = 190,969,500,000

Strike 172000 has a total call value of 654,000,000 versus a total put value of 188,411,250,000 Combined total value = 189,065,250,000

Strike 172250 has a total call value of 683,250,000 versus a total put value of 186,477,750,000 Combined total value = 187,161,000,000

Strike 172500 has a total call value of 712,500,000 versus a total put value of 184,544,250,000 Combined total value = 185,256,750,000

Strike 172750 has a total call value of 741,750,000 versus a total put value of 182,610,750,000 Combined total value = 183,352,500,000

Strike 173000 has a total call value of 771,000,000 versus a total put value of 180,677,250,000 Combined total value = 181,448,250,000

Strike 173250 has a total call value of 800,250,000 versus a total put value of 178,743,750,000 Combined total value = 179,544,000,000

Strike 173500 has a total call value of 829,500,000 versus a total put value of 176,810,250,000 Combined total value = 177,639,750,000

Strike 173750 has a total call value of 858,750,000 versus a total put value of 174,876,750,000 Combined total value = 175,735,500,000

Strike 174000 has a total call value of 888,000,000 versus a total put value of 172,943,250,000 Combined total value = 173,831,250,000

Strike 174250 has a total call value of 917,250,000 versus a total put value of 171,009,750,000 Combined total value = 171,927,000,000

Strike 174500 has a total call value of 946,500,000 versus a total put value of 169,076,250,000 Combined total value = 170,022,750,000

Strike 174750 has a total call value of 975,750,000 versus a total put value of 167,142,750,000 Combined total value = 168,118,500,000

Strike 175000 has a total call value of 1,005,000,000 versus a total put value of 165,209,250,000 Combined total value = 166,214,250,000

Strike 175250 has a total call value of 1,041,000,000 versus a total put value of 163,308,000,000 Combined total value = 164,349,000,000

Strike 175500 has a total call value of 1,077,000,000 versus a total put value of 161,406,750,000 Combined total value = 162,483,750,000

Strike 175750 has a total call value of 1,113,000,000 versus a total put value of 159,505,500,000 Combined total value = 160,618,500,000

Strike 176000 has a total call value of 1,149,000,000 versus a total put value of 157,604,250,000 Combined total value = 158,753,250,000

Strike 176250 has a total call value of 1,185,000,000 versus a total put value of 155,703,000,000 Combined total value = 156,888,000,000

Strike 176500 has a total call value of 1,221,000,000 versus a total put value of 153,801,750,000 Combined total value = 155,022,750,000

Strike 176750 has a total call value of 1,257,000,000 versus a total put value of 151,900,500,000 Combined total value = 153,157,500,000

Strike 177000 has a total call value of 1,293,000,000 versus a total put value of 149,999,250,000 Combined total value = 151,292,250,000

Strike 177250 has a total call value of 1,329,000,000 versus a total put value of 148,098,000,000 Combined total value = 149,427,000,000

Strike 177500 has a total call value of 1,365,000,000 versus a total put value of 146,196,750,000 Combined total value = 147,561,750,000

Strike 177750 has a total call value of 1,401,000,000 versus a total put value of 144,295,500,000 Combined total value = 145,696,500,000

Strike 178000 has a total call value of 1,437,000,000 versus a total put value of 142,394,250,000 Combined total value = 143,831,250,000

Strike 178250 has a total call value of 1,473,000,000 versus a total put value of 140,493,000,000 Combined total value = 141,966,000,000

Strike 178500 has a total call value of 1,509,000,000 versus a total put value of 138,591,750,000 Combined total value = 140,100,750,000

Strike 178750 has a total call value of 1,545,000,000 versus a total put value of 136,690,500,000 Combined total value = 138,235,500,000

Strike 179000 has a total call value of 1,581,000,000 versus a total put value of 134,789,250,000 Combined total value = 136,370,250,000

Strike 179250 has a total call value of 1,617,000,000 versus a total put value of 132,888,000,000 Combined total value = 134,505,000,000

Strike 179500 has a total call value of 1,653,000,000 versus a total put value of 130,986,750,000 Combined total value = 132,639,750,000

Strike 179750 has a total call value of 1,689,000,000 versus a total put value of 129,085,500,000 Combined total value = 130,774,500,000

Strike 180000 has a total call value of 1,725,000,000 versus a total put value of 127,184,250,000 Combined total value = 128,909,250,000

Strike 180250 has a total call value of 1,788,750,000 versus a total put value of 125,585,250,000 Combined total value = 127,374,000,000

Strike 180500 has a total call value of 1,852,500,000 versus a total put value of 123,986,250,000 Combined total value = 125,838,750,000

Strike 180750 has a total call value of 1,916,250,000 versus a total put value of 122,387,250,000 Combined total value = 124,303,500,000

Strike 181000 has a total call value of 1,980,000,000 versus a total put value of 120,788,250,000 Combined total value = 122,768,250,000

Strike 181250 has a total call value of 2,043,750,000 versus a total put value of 119,189,250,000 Combined total value = 121,233,000,000

Strike 181500 has a total call value of 2,107,500,000 versus a total put value of 117,590,250,000 Combined total value = 119,697,750,000

Strike 181750 has a total call value of 2,171,250,000 versus a total put value of 115,991,250,000 Combined total value = 118,162,500,000

Strike 182000 has a total call value of 2,235,000,000 versus a total put value of 114,392,250,000 Combined total value = 116,627,250,000

Strike 182250 has a total call value of 2,298,750,000 versus a total put value of 112,793,250,000 Combined total value = 115,092,000,000

Strike 182500 has a total call value of 2,362,500,000 versus a total put value of 111,194,250,000 Combined total value = 113,556,750,000

Strike 182750 has a total call value of 2,426,250,000 versus a total put value of 109,595,250,000 Combined total value = 112,021,500,000

Strike 183000 has a total call value of 2,490,000,000 versus a total put value of 107,996,250,000 Combined total value = 110,486,250,000

Strike 183250 has a total call value of 2,553,750,000 versus a total put value of 106,397,250,000 Combined total value = 108,951,000,000

Strike 183500 has a total call value of 2,617,500,000 versus a total put value of 104,798,250,000 Combined total value = 107,415,750,000

Strike 183750 has a total call value of 2,681,250,000 versus a total put value of 103,199,250,000 Combined total value = 105,880,500,000

Strike 184000 has a total call value of 2,745,000,000 versus a total put value of 101,600,250,000 Combined total value = 104,345,250,000

Strike 184250 has a total call value of 2,808,750,000 versus a total put value of 100,001,250,000 Combined total value = 102,810,000,000

Strike 184500 has a total call value of 2,872,500,000 versus a total put value of 98,402,250,000 Combined total value = 101,274,750,000

Strike 184750 has a total call value of 2,936,250,000 versus a total put value of 96,803,250,000 Combined total value = 99,739,500,000

Strike 185000 has a total call value of 3,000,000,000 versus a total put value of 95,204,250,000 Combined total value = 98,204,250,000

Strike 185250 has a total call value of 3,084,000,000 versus a total put value of 93,818,250,000 Combined total value = 96,902,250,000

Strike 185500 has a total call value of 3,168,000,000 versus a total put value of 92,432,250,000 Combined total value = 95,600,250,000

Strike 185750 has a total call value of 3,252,000,000 versus a total put value of 91,046,250,000 Combined total value = 94,298,250,000

Strike 186000 has a total call value of 3,336,000,000 versus a total put value of 89,660,250,000 Combined total value = 92,996,250,000

Strike 186250 has a total call value of 3,420,000,000 versus a total put value of 88,274,250,000 Combined total value = 91,694,250,000

Strike 186500 has a total call value of 3,504,000,000 versus a total put value of 86,888,250,000 Combined total value = 90,392,250,000

Strike 186750 has a total call value of 3,588,000,000 versus a total put value of 85,502,250,000 Combined total value = 89,090,250,000

Strike 187000 has a total call value of 3,672,000,000 versus a total put value of 84,116,250,000 Combined total value = 87,788,250,000

Strike 187250 has a total call value of 3,756,000,000 versus a total put value of 82,730,250,000 Combined total value = 86,486,250,000

Strike 187500 has a total call value of 3,840,000,000 versus a total put value of 81,344,250,000 Combined total value = 85,184,250,000

Strike 187750 has a total call value of 3,924,000,000 versus a total put value of 79,958,250,000 Combined total value = 83,882,250,000

Strike 188000 has a total call value of 4,008,000,000 versus a total put value of 78,572,250,000 Combined total value = 82,580,250,000

Strike 188250 has a total call value of 4,092,000,000 versus a total put value of 77,186,250,000 Combined total value = 81,278,250,000

Strike 188500 has a total call value of 4,176,000,000 versus a total put value of 75,800,250,000 Combined total value = 79,976,250,000

Strike 188750 has a total call value of 4,260,000,000 versus a total put value of 74,414,250,000 Combined total value = 78,674,250,000

Strike 189000 has a total call value of 4,344,000,000 versus a total put value of 73,028,250,000 Combined total value = 77,372,250,000

Strike 189250 has a total call value of 4,428,000,000 versus a total put value of 71,642,250,000 Combined total value = 76,070,250,000

Strike 189500 has a total call value of 4,512,000,000 versus a total put value of 70,256,250,000 Combined total value = 74,768,250,000

Strike 189750 has a total call value of 4,596,000,000 versus a total put value of 68,870,250,000 Combined total value = 73,466,250,000

Strike 190000 has a total call value of 4,680,000,000 versus a total put value of 67,484,250,000 Combined total value = 72,164,250,000

Strike 190250 has a total call value of 4,824,750,000 versus a total put value of 66,396,750,000 Combined total value = 71,221,500,000

Strike 190500 has a total call value of 4,969,500,000 versus a total put value of 65,309,250,000 Combined total value = 70,278,750,000

Strike 190750 has a total call value of 5,114,250,000 versus a total put value of 64,221,750,000 Combined total value = 69,336,000,000

Strike 191000 has a total call value of 5,259,000,000 versus a total put value of 63,134,250,000 Combined total value = 68,393,250,000

Strike 191250 has a total call value of 5,403,750,000 versus a total put value of 62,047,500,000 Combined total value = 67,451,250,000

Strike 191500 has a total call value of 5,548,500,000 versus a total put value of 60,960,750,000 Combined total value = 66,509,250,000

Strike 191750 has a total call value of 5,693,250,000 versus a total put value of 59,874,000,000 Combined total value = 65,567,250,000

Strike 192000 has a total call value of 5,838,000,000 versus a total put value of 58,787,250,000 Combined total value = 64,625,250,000

Strike 192250 has a total call value of 5,982,750,000 versus a total put value of 57,700,500,000 Combined total value = 63,683,250,000

Strike 192500 has a total call value of 6,127,500,000 versus a total put value of 56,613,750,000 Combined total value = 62,741,250,000

Strike 192750 has a total call value of 6,272,250,000 versus a total put value of 55,527,000,000 Combined total value = 61,799,250,000

Strike 193000 has a total call value of 6,417,000,000 versus a total put value of 54,440,250,000 Combined total value = 60,857,250,000

Strike 193250 has a total call value of 6,561,750,000 versus a total put value of 53,353,500,000 Combined total value = 59,915,250,000

Strike 193500 has a total call value of 6,706,500,000 versus a total put value of 52,266,750,000 Combined total value = 58,973,250,000

Strike 193750 has a total call value of 6,851,250,000 versus a total put value of 51,180,000,000 Combined total value = 58,031,250,000

Strike 194000 has a total call value of 6,996,000,000 versus a total put value of 50,093,250,000 Combined total value = 57,089,250,000

Strike 194250 has a total call value of 7,140,750,000 versus a total put value of 49,006,500,000 Combined total value = 56,147,250,000

Strike 194500 has a total call value of 7,285,500,000 versus a total put value of 47,919,750,000 Combined total value = 55,205,250,000

Strike 194750 has a total call value of 7,430,250,000 versus a total put value of 46,833,000,000 Combined total value = 54,263,250,000

Strike 195000 has a total call value of 7,575,000,000 versus a total put value of 45,746,250,000 Combined total value = 53,321,250,000

Strike 195250 has a total call value of 8,034,000,000 versus a total put value of 44,885,250,000 Combined total value = 52,919,250,000

Strike 195500 has a total call value of 8,493,000,000 versus a total put value of 44,024,250,000 Combined total value = 52,517,250,000

Strike 195750 has a total call value of 8,952,000,000 versus a total put value of 43,163,250,000 Combined total value = 52,115,250,000

Strike 196000 has a total call value of 9,411,000,000 versus a total put value of 42,302,250,000 Combined total value = 51,713,250,000

Strike 196250 has a total call value of 9,870,000,000 versus a total put value of 41,441,250,000 Combined total value = 51,311,250,000

Strike 196500 has a total call value of 10,329,000,000 versus a total put value of 40,580,250,000 Combined total value = 50,909,250,000

Strike 196750 has a total call value of 10,788,000,000 versus a total put value of 39,719,250,000 Combined total value = 50,507,250,000

Strike 197000 has a total call value of 11,247,000,000 versus a total put value of 38,858,250,000 Combined total value = 50,105,250,000

Strike 197250 has a total call value of 11,706,000,000 versus a total put value of 37,997,250,000 Combined total value = 49,703,250,000

Strike 197500 has a total call value of 12,165,000,000 versus a total put value of 37,136,250,000 Combined total value = 49,301,250,000

Strike 197750 has a total call value of 12,624,000,000 versus a total put value of 36,275,250,000 Combined total value = 48,899,250,000

Strike 198000 has a total call value of 13,083,000,000 versus a total put value of 35,414,250,000 Combined total value = 48,497,250,000

Strike 198250 has a total call value of 13,545,000,000 versus a total put value of 34,553,250,000 Combined total value = 48,098,250,000

Strike 198500 has a total call value of 14,007,000,000 versus a total put value of 33,692,250,000 Combined total value = 47,699,250,000

Strike 198750 has a total call value of 14,469,000,000 versus a total put value of 32,831,250,000 Combined total value = 47,300,250,000

Strike 199000 has a total call value of 14,931,000,000 versus a total put value of 31,970,250,000 Combined total value = 46,901,250,000

Strike 199250 has a total call value of 15,393,000,000 versus a total put value of 31,109,250,000 Combined total value = 46,502,250,000

Strike 199500 has a total call value of 15,855,000,000 versus a total put value of 30,248,250,000 Combined total value = 46,103,250,000

Strike 199750 has a total call value of 16,317,000,000 versus a total put value of 29,387,250,000 Combined total value = 45,704,250,000

Strike 200000 has a total call value of 16,779,000,000 versus a total put value of 28,526,250,000 Combined total value = 45,305,250,000

Strike 200250 has a total call value of 17,395,500,000 versus a total put value of 28,023,000,000 Combined total value = 45,418,500,000

Strike 200500 has a total call value of 18,012,000,000 versus a total put value of 27,519,750,000 Combined total value = 45,531,750,000

Strike 200750 has a total call value of 18,628,500,000 versus a total put value of 27,016,500,000 Combined total value = 45,645,000,000

Strike 201000 has a total call value of 19,245,000,000 versus a total put value of 26,513,250,000 Combined total value = 45,758,250,000

Strike 201250 has a total call value of 19,861,500,000 versus a total put value of 26,010,000,000 Combined total value = 45,871,500,000

Strike 201500 has a total call value of 20,478,000,000 versus a total put value of 25,506,750,000 Combined total value = 45,984,750,000

Strike 201750 has a total call value of 21,094,500,000 versus a total put value of 25,003,500,000 Combined total value = 46,098,000,000

Strike 202000 has a total call value of 21,711,000,000 versus a total put value of 24,500,250,000 Combined total value = 46,211,250,000

Strike 202250 has a total call value of 22,327,500,000 versus a total put value of 23,997,000,000 Combined total value = 46,324,500,000

Strike 202500 has a total call value of 22,944,000,000 versus a total put value of 23,493,750,000 Combined total value = 46,437,750,000

Strike 202750 has a total call value of 23,560,500,000 versus a total put value of 22,990,500,000 Combined total value = 46,551,000,000

Strike 203000 has a total call value of 24,177,000,000 versus a total put value of 22,487,250,000 Combined total value = 46,664,250,000

Strike 203250 has a total call value of 24,793,500,000 versus a total put value of 21,984,000,000 Combined total value = 46,777,500,000

Strike 203500 has a total call value of 25,410,000,000 versus a total put value of 21,480,750,000 Combined total value = 46,890,750,000

Strike 203750 has a total call value of 26,026,500,000 versus a total put value of 20,977,500,000 Combined total value = 47,004,000,000

Strike 204000 has a total call value of 26,643,000,000 versus a total put value of 20,474,250,000 Combined total value = 47,117,250,000

Strike 204250 has a total call value of 27,259,500,000 versus a total put value of 19,971,000,000 Combined total value = 47,230,500,000

Strike 204500 has a total call value of 27,876,000,000 versus a total put value of 19,467,750,000 Combined total value = 47,343,750,000

Strike 204750 has a total call value of 28,492,500,000 versus a total put value of 18,964,500,000 Combined total value = 47,457,000,000

Strike 205000 has a total call value of 29,109,000,000 versus a total put value of 18,461,250,000 Combined total value = 47,570,250,000

Strike 205250 has a total call value of 29,760,000,000 versus a total put value of 18,014,250,000 Combined total value = 47,774,250,000

Strike 205500 has a total call value of 30,411,000,000 versus a total put value of 17,567,250,000 Combined total value = 47,978,250,000

Strike 205750 has a total call value of 31,062,000,000 versus a total put value of 17,120,250,000 Combined total value = 48,182,250,000

Strike 206000 has a total call value of 31,713,000,000 versus a total put value of 16,673,250,000 Combined total value = 48,386,250,000

Strike 206250 has a total call value of 32,364,000,000 versus a total put value of 16,226,250,000 Combined total value = 48,590,250,000

Strike 206500 has a total call value of 33,015,000,000 versus a total put value of 15,779,250,000 Combined total value = 48,794,250,000

Strike 206750 has a total call value of 33,666,000,000 versus a total put value of 15,332,250,000 Combined total value = 48,998,250,000

Strike 207000 has a total call value of 34,317,000,000 versus a total put value of 14,885,250,000 Combined total value = 49,202,250,000

Strike 207250 has a total call value of 34,968,000,000 versus a total put value of 14,438,250,000 Combined total value = 49,406,250,000

Strike 207500 has a total call value of 35,619,000,000 versus a total put value of 13,991,250,000 Combined total value = 49,610,250,000

Strike 207750 has a total call value of 36,270,000,000 versus a total put value of 13,544,250,000 Combined total value = 49,814,250,000

Strike 208000 has a total call value of 36,921,000,000 versus a total put value of 13,097,250,000 Combined total value = 50,018,250,000

Strike 208250 has a total call value of 37,572,000,000 versus a total put value of 12,650,250,000 Combined total value = 50,222,250,000

Strike 208500 has a total call value of 38,223,000,000 versus a total put value of 12,203,250,000 Combined total value = 50,426,250,000

Strike 208750 has a total call value of 38,874,000,000 versus a total put value of 11,756,250,000 Combined total value = 50,630,250,000

Strike 209000 has a total call value of 39,525,000,000 versus a total put value of 11,309,250,000 Combined total value = 50,834,250,000

Strike 209250 has a total call value of 40,338,750,000 versus a total put value of 10,862,250,000 Combined total value = 51,201,000,000

Strike 209500 has a total call value of 41,152,500,000 versus a total put value of 10,415,250,000 Combined total value = 51,567,750,000

Strike 209750 has a total call value of 41,966,250,000 versus a total put value of 9,968,250,000 Combined total value = 51,934,500,000

Strike 210000 has a total call value of 42,780,000,000 versus a total put value of 9,521,250,000 Combined total value = 52,301,250,000

Strike 210250 has a total call value of 43,734,750,000 versus a total put value of 9,241,500,000 Combined total value = 52,976,250,000

Strike 210500 has a total call value of 44,689,500,000 versus a total put value of 8,961,750,000 Combined total value = 53,651,250,000

Strike 210750 has a total call value of 45,644,250,000 versus a total put value of 8,682,000,000 Combined total value = 54,326,250,000

Strike 211000 has a total call value of 46,599,000,000 versus a total put value of 8,402,250,000 Combined total value = 55,001,250,000

Strike 211250 has a total call value of 47,553,750,000 versus a total put value of 8,122,500,000 Combined total value = 55,676,250,000

Strike 211500 has a total call value of 48,508,500,000 versus a total put value of 7,842,750,000 Combined total value = 56,351,250,000

Strike 211750 has a total call value of 49,463,250,000 versus a total put value of 7,563,000,000 Combined total value = 57,026,250,000

Strike 212000 has a total call value of 50,418,000,000 versus a total put value of 7,283,250,000 Combined total value = 57,701,250,000

Strike 212250 has a total call value of 51,372,750,000 versus a total put value of 7,003,500,000 Combined total value = 58,376,250,000

Strike 212500 has a total call value of 52,327,500,000 versus a total put value of 6,723,750,000 Combined total value = 59,051,250,000

Strike 212750 has a total call value of 53,282,250,000 versus a total put value of 6,444,000,000 Combined total value = 59,726,250,000

Strike 213000 has a total call value of 54,237,000,000 versus a total put value of 6,164,250,000 Combined total value = 60,401,250,000

Strike 213250 has a total call value of 55,191,750,000 versus a total put value of 5,884,500,000 Combined total value = 61,076,250,000

Strike 213500 has a total call value of 56,146,500,000 versus a total put value of 5,604,750,000 Combined total value = 61,751,250,000

Strike 213750 has a total call value of 57,101,250,000 versus a total put value of 5,325,000,000 Combined total value = 62,426,250,000

Strike 214000 has a total call value of 58,056,000,000 versus a total put value of 5,045,250,000 Combined total value = 63,101,250,000

Strike 214250 has a total call value of 59,012,250,000 versus a total put value of 4,765,500,000 Combined total value = 63,777,750,000

Strike 214500 has a total call value of 59,968,500,000 versus a total put value of 4,485,750,000 Combined total value = 64,454,250,000

Strike 214750 has a total call value of 60,924,750,000 versus a total put value of 4,206,000,000 Combined total value = 65,130,750,000

Strike 215000 has a total call value of 61,881,000,000 versus a total put value of 3,926,250,000 Combined total value = 65,807,250,000

Strike 215250 has a total call value of 63,162,750,000 versus a total put value of 3,763,500,000 Combined total value = 66,926,250,000

Strike 215500 has a total call value of 64,444,500,000 versus a total put value of 3,600,750,000 Combined total value = 68,045,250,000

Strike 215750 has a total call value of 65,726,250,000 versus a total put value of 3,438,000,000 Combined total value = 69,164,250,000

Strike 216000 has a total call value of 67,008,000,000 versus a total put value of 3,275,250,000 Combined total value = 70,283,250,000

Strike 216250 has a total call value of 68,301,750,000 versus a total put value of 3,117,000,000 Combined total value = 71,418,750,000

Strike 216500 has a total call value of 69,595,500,000 versus a total put value of 2,958,750,000 Combined total value = 72,554,250,000

Strike 216750 has a total call value of 70,889,250,000 versus a total put value of 2,800,500,000 Combined total value = 73,689,750,000

Strike 217000 has a total call value of 72,183,000,000 versus a total put value of 2,642,250,000 Combined total value = 74,825,250,000

Strike 217250 has a total call value of 73,476,750,000 versus a total put value of 2,484,000,000 Combined total value = 75,960,750,000

Strike 217500 has a total call value of 74,770,500,000 versus a total put value of 2,325,750,000 Combined total value = 77,096,250,000

Strike 217750 has a total call value of 76,064,250,000 versus a total put value of 2,167,500,000 Combined total value = 78,231,750,000

Strike 218000 has a total call value of 77,358,000,000 versus a total put value of 2,009,250,000 Combined total value = 79,367,250,000

Strike 218250 has a total call value of 78,690,750,000 versus a total put value of 1,856,250,000 Combined total value = 80,547,000,000

Strike 218500 has a total call value of 80,023,500,000 versus a total put value of 1,703,250,000 Combined total value = 81,726,750,000

Strike 218750 has a total call value of 81,356,250,000 versus a total put value of 1,550,250,000 Combined total value = 82,906,500,000

Strike 219000 has a total call value of 82,689,000,000 versus a total put value of 1,397,250,000 Combined total value = 84,086,250,000

Strike 219250 has a total call value of 84,021,750,000 versus a total put value of 1,244,250,000 Combined total value = 85,266,000,000

Strike 219500 has a total call value of 85,354,500,000 versus a total put value of 1,091,250,000 Combined total value = 86,445,750,000

Strike 219750 has a total call value of 86,687,250,000 versus a total put value of 938,250,000 Combined total value = 87,625,500,000

Strike 220000 has a total call value of 88,020,000,000 versus a total put value of 786,000,000 Combined total value = 88,806,000,000

Strike 220250 has a total call value of 89,563,500,000 versus a total put value of 748,500,000 Combined total value = 90,312,000,000

Strike 220500 has a total call value of 91,107,000,000 versus a total put value of 711,000,000 Combined total value = 91,818,000,000

Strike 220750 has a total call value of 92,650,500,000 versus a total put value of 673,500,000 Combined total value = 93,324,000,000

Strike 221000 has a total call value of 94,194,000,000 versus a total put value of 636,000,000 Combined total value = 94,830,000,000

Strike 221250 has a total call value of 95,737,500,000 versus a total put value of 600,750,000 Combined total value = 96,338,250,000

Strike 221500 has a total call value of 97,281,000,000 versus a total put value of 565,500,000 Combined total value = 97,846,500,000

Strike 221750 has a total call value of 98,824,500,000 versus a total put value of 530,250,000 Combined total value = 99,354,750,000

Strike 222000 has a total call value of 100,368,000,000 versus a total put value of 495,000,000 Combined total value = 100,863,000,000

Strike 222250 has a total call value of 102,039,000,000 versus a total put value of 459,750,000 Combined total value = 102,498,750,000

Strike 222500 has a total call value of 103,710,000,000 versus a total put value of 424,500,000 Combined total value = 104,134,500,000

Strike 222750 has a total call value of 105,382,500,000 versus a total put value of 389,250,000 Combined total value = 105,771,750,000

Strike 223000 has a total call value of 107,055,000,000 versus a total put value of 354,000,000 Combined total value = 107,409,000,000

Strike 223250 has a total call value of 108,728,250,000 versus a total put value of 318,750,000 Combined total value = 109,047,000,000

Strike 223500 has a total call value of 110,401,500,000 versus a total put value of 283,500,000 Combined total value = 110,685,000,000

Strike 223750 has a total call value of 112,074,750,000 versus a total put value of 248,250,000 Combined total value = 112,323,000,000

Strike 224000 has a total call value of 113,748,000,000 versus a total put value of 213,000,000 Combined total value = 113,961,000,000

Strike 224250 has a total call value of 115,425,750,000 versus a total put value of 180,750,000 Combined total value = 115,606,500,000

Strike 224500 has a total call value of 117,103,500,000 versus a total put value of 148,500,000 Combined total value = 117,252,000,000

Strike 224750 has a total call value of 118,781,250,000 versus a total put value of 116,250,000 Combined total value = 118,897,500,000

Strike 225000 has a total call value of 120,459,000,000 versus a total put value of 84,000,000 Combined total value = 120,543,000,000

Strike 225250 has a total call value of 122,291,250,000 versus a total put value of 78,000,000 Combined total value = 122,369,250,000

Strike 225500 has a total call value of 124,123,500,000 versus a total put value of 72,000,000 Combined total value = 124,195,500,000

Strike 225750 has a total call value of 125,955,750,000 versus a total put value of 66,000,000 Combined total value = 126,021,750,000

Strike 226000 has a total call value of 127,788,000,000 versus a total put value of 60,000,000 Combined total value = 127,848,000,000

Strike 226250 has a total call value of 129,624,750,000 versus a total put value of 54,000,000 Combined total value = 129,678,750,000

Strike 226500 has a total call value of 131,461,500,000 versus a total put value of 48,000,000 Combined total value = 131,509,500,000

Strike 226750 has a total call value of 133,298,250,000 versus a total put value of 42,000,000 Combined total value = 133,340,250,000

Strike 227000 has a total call value of 135,135,000,000 versus a total put value of 36,000,000 Combined total value = 135,171,000,000

Strike 227250 has a total call value of 136,981,500,000 versus a total put value of 30,750,000 Combined total value = 137,012,250,000

Strike 227500 has a total call value of 138,828,000,000 versus a total put value of 25,500,000 Combined total value = 138,853,500,000

Strike 227750 has a total call value of 140,674,500,000 versus a total put value of 20,250,000 Combined total value = 140,694,750,000

Strike 228000 has a total call value of 142,521,000,000 versus a total put value of 15,000,000 Combined total value = 142,536,000,000

Strike 228250 has a total call value of 144,378,750,000 versus a total put value of 11,250,000 Combined total value = 144,390,000,000

Strike 228500 has a total call value of 146,236,500,000 versus a total put value of 7,500,000 Combined total value = 146,244,000,000

Strike 228750 has a total call value of 148,094,250,000 versus a total put value of 3,750,000 Combined total value = 148,098,000,000

Strike 229000 has a total call value of 149,952,000,000 versus a total put value of 0 Combined total value = 149,952,000,000

Strike 229250 has a total call value of 151,962,000,000 versus a total put value of 0 Combined total value = 151,962,000,000

Strike 229500 has a total call value of 153,972,000,000 versus a total put value of 0 Combined total value = 153,972,000,000

Strike 229750 has a total call value of 155,982,000,000 versus a total put value of 0 Combined total value = 155,982,000,000

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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