TCS
Tata Consultancy Serv Lt
TCS
2696.3
Max Pain
Strike 2180 has a total call value of 0 versus a total put value of 831,637,800,000 Combined total value = 831,637,800,000
Strike 2200 has a total call value of 0 versus a total put value of 806,290,100,000 Combined total value = 806,290,100,000
Strike 2220 has a total call value of 0 versus a total put value of 781,034,100,000 Combined total value = 781,034,100,000
Strike 2240 has a total call value of 0 versus a total put value of 755,778,100,000 Combined total value = 755,778,100,000
Strike 2260 has a total call value of 0 versus a total put value of 730,522,100,000 Combined total value = 730,522,100,000
Strike 2280 has a total call value of 0 versus a total put value of 705,266,100,000 Combined total value = 705,266,100,000
Strike 2300 has a total call value of 0 versus a total put value of 680,120,350,000 Combined total value = 680,120,350,000
Strike 2320 has a total call value of 0 versus a total put value of 655,262,650,000 Combined total value = 655,262,650,000
Strike 2340 has a total call value of 0 versus a total put value of 630,592,550,000 Combined total value = 630,592,550,000
Strike 2360 has a total call value of 0 versus a total put value of 606,287,850,000 Combined total value = 606,287,850,000
Strike 2380 has a total call value of 0 versus a total put value of 582,072,050,000 Combined total value = 582,072,050,000
Strike 2400 has a total call value of 0 versus a total put value of 557,945,850,000 Combined total value = 557,945,850,000
Strike 2420 has a total call value of 1,400,000 versus a total put value of 534,564,450,000 Combined total value = 534,565,850,000
Strike 2440 has a total call value of 2,800,000 versus a total put value of 511,218,400,000 Combined total value = 511,221,200,000
Strike 2460 has a total call value of 4,200,000 versus a total put value of 488,257,350,000 Combined total value = 488,261,550,000
Strike 2480 has a total call value of 8,050,000 versus a total put value of 465,385,900,000 Combined total value = 465,393,950,000
Strike 2500 has a total call value of 15,050,000 versus a total put value of 442,693,300,000 Combined total value = 442,708,350,000
Strike 2520 has a total call value of 130,200,000 versus a total put value of 420,904,050,000 Combined total value = 421,034,250,000
Strike 2540 has a total call value of 253,050,000 versus a total put value of 399,405,300,000 Combined total value = 399,658,350,000
Strike 2560 has a total call value of 383,250,000 versus a total put value of 378,075,950,000 Combined total value = 378,459,200,000
Strike 2580 has a total call value of 529,550,000 versus a total put value of 357,497,350,000 Combined total value = 358,026,900,000
Strike 2600 has a total call value of 741,300,000 versus a total put value of 337,370,250,000 Combined total value = 338,111,550,000
Strike 2620 has a total call value of 1,271,900,000 versus a total put value of 319,078,550,000 Combined total value = 320,350,450,000
Strike 2640 has a total call value of 1,908,200,000 versus a total put value of 301,066,500,000 Combined total value = 302,974,700,000
Strike 2660 has a total call value of 2,727,900,000 versus a total put value of 283,691,450,000 Combined total value = 286,419,350,000
Strike 2680 has a total call value of 3,812,900,000 versus a total put value of 267,223,950,000 Combined total value = 271,036,850,000
Strike 2700 has a total call value of 5,321,400,000 versus a total put value of 251,353,550,000 Combined total value = 256,674,950,000
Strike 2720 has a total call value of 8,758,050,000 versus a total put value of 236,695,900,000 Combined total value = 245,453,950,000
Strike 2740 has a total call value of 12,691,000,000 versus a total put value of 222,342,050,000 Combined total value = 235,033,050,000
Strike 2760 has a total call value of 18,664,800,000 versus a total put value of 208,437,600,000 Combined total value = 227,102,400,000
Strike 2780 has a total call value of 25,475,800,000 versus a total put value of 194,856,200,000 Combined total value = 220,332,000,000
Strike 2800 has a total call value of 32,915,400,000 versus a total put value of 181,475,350,000 Combined total value = 214,390,750,000
Strike 2820 has a total call value of 43,478,400,000 versus a total put value of 169,416,800,000 Combined total value = 212,895,200,000
Strike 2840 has a total call value of 54,954,550,000 versus a total put value of 157,535,350,000 Combined total value = 212,489,900,000
Strike 2860 has a total call value of 67,250,050,000 versus a total put value of 146,033,300,000 Combined total value = 213,283,350,000
Strike 2880 has a total call value of 80,776,150,000 versus a total put value of 134,780,100,000 Combined total value = 215,556,250,000
Strike 2900 has a total call value of 95,076,800,000 versus a total put value of 123,791,850,000 Combined total value = 218,868,650,000
Strike 2920 has a total call value of 112,080,850,000 versus a total put value of 113,997,100,000 Combined total value = 226,077,950,000
Strike 2940 has a total call value of 129,676,750,000 versus a total put value of 104,449,800,000 Combined total value = 234,126,550,000
Strike 2960 has a total call value of 148,343,300,000 versus a total put value of 95,185,650,000 Combined total value = 243,528,950,000
Strike 2980 has a total call value of 167,815,550,000 versus a total put value of 86,272,900,000 Combined total value = 254,088,450,000
Strike 3000 has a total call value of 188,255,900,000 versus a total put value of 77,616,700,000 Combined total value = 265,872,600,000
Strike 3020 has a total call value of 214,748,450,000 versus a total put value of 70,025,900,000 Combined total value = 284,774,350,000
Strike 3040 has a total call value of 242,563,300,000 versus a total put value of 62,834,100,000 Combined total value = 305,397,400,000
Strike 3060 has a total call value of 271,511,450,000 versus a total put value of 56,071,400,000 Combined total value = 327,582,850,000
Strike 3080 has a total call value of 302,368,850,000 versus a total put value of 49,805,000,000 Combined total value = 352,173,850,000
Strike 3100 has a total call value of 333,719,750,000 versus a total put value of 43,828,750,000 Combined total value = 377,548,500,000
Strike 3120 has a total call value of 368,463,550,000 versus a total put value of 38,388,350,000 Combined total value = 406,851,900,000
Strike 3140 has a total call value of 403,619,300,000 versus a total put value of 33,387,900,000 Combined total value = 437,007,200,000
Strike 3160 has a total call value of 439,947,550,000 versus a total put value of 29,066,450,000 Combined total value = 469,014,000,000
Strike 3180 has a total call value of 477,463,000,000 versus a total put value of 25,280,850,000 Combined total value = 502,743,850,000
Strike 3200 has a total call value of 516,576,200,000 versus a total put value of 21,845,250,000 Combined total value = 538,421,450,000
Strike 3220 has a total call value of 559,048,700,000 versus a total put value of 19,109,300,000 Combined total value = 578,158,000,000
Strike 3240 has a total call value of 602,402,150,000 versus a total put value of 16,626,400,000 Combined total value = 619,028,550,000
Strike 3260 has a total call value of 646,789,500,000 versus a total put value of 14,408,100,000 Combined total value = 661,197,600,000
Strike 3280 has a total call value of 691,715,850,000 versus a total put value of 12,402,250,000 Combined total value = 704,118,100,000
Strike 3300 has a total call value of 737,080,050,000 versus a total put value of 10,640,000,000 Combined total value = 747,720,050,000
Strike 3320 has a total call value of 784,195,650,000 versus a total put value of 9,452,450,000 Combined total value = 793,648,100,000
Strike 3340 has a total call value of 831,541,550,000 versus a total put value of 8,318,800,000 Combined total value = 839,860,350,000
Strike 3360 has a total call value of 879,005,050,000 versus a total put value of 7,222,950,000 Combined total value = 886,228,000,000
Strike 3380 has a total call value of 926,568,650,000 versus a total put value of 6,162,800,000 Combined total value = 932,731,450,000
Strike 3400 has a total call value of 974,237,600,000 versus a total put value of 5,103,000,000 Combined total value = 979,340,600,000
Strike 3420 has a total call value of 1,022,876,400,000 versus a total put value of 4,577,300,000 Combined total value = 1,027,453,700,000
Strike 3440 has a total call value of 1,071,693,700,000 versus a total put value of 4,059,300,000 Combined total value = 1,075,753,000,000
Strike 3460 has a total call value of 1,120,665,700,000 versus a total put value of 3,568,600,000 Combined total value = 1,124,234,300,000
Strike 3480 has a total call value of 1,169,772,450,000 versus a total put value of 3,082,100,000 Combined total value = 1,172,854,550,000
Strike 3500 has a total call value of 1,218,928,550,000 versus a total put value of 2,600,150,000 Combined total value = 1,221,528,700,000
Strike 3520 has a total call value of 1,268,544,550,000 versus a total put value of 2,193,800,000 Combined total value = 1,270,738,350,000
Strike 3540 has a total call value of 1,318,376,150,000 versus a total put value of 1,815,450,000 Combined total value = 1,320,191,600,000
Strike 3560 has a total call value of 1,368,244,500,000 versus a total put value of 1,444,800,000 Combined total value = 1,369,689,300,000
Strike 3580 has a total call value of 1,418,142,250,000 versus a total put value of 1,094,800,000 Combined total value = 1,419,237,050,000
Strike 3600 has a total call value of 1,468,050,500,000 versus a total put value of 744,800,000 Combined total value = 1,468,795,300,000
Strike 3620 has a total call value of 1,518,322,050,000 versus a total put value of 652,050,000 Combined total value = 1,518,974,100,000
Strike 3640 has a total call value of 1,568,593,600,000 versus a total put value of 559,300,000 Combined total value = 1,569,152,900,000
Strike 3660 has a total call value of 1,618,877,400,000 versus a total put value of 482,650,000 Combined total value = 1,619,360,050,000
Strike 3680 has a total call value of 1,669,161,200,000 versus a total put value of 406,000,000 Combined total value = 1,669,567,200,000
Strike 3700 has a total call value of 1,719,474,400,000 versus a total put value of 336,350,000 Combined total value = 1,719,810,750,000
Strike 3720 has a total call value of 1,769,806,850,000 versus a total put value of 266,700,000 Combined total value = 1,770,073,550,000
Strike 3740 has a total call value of 1,820,201,600,000 versus a total put value of 216,300,000 Combined total value = 1,820,417,900,000
Strike 3760 has a total call value of 1,870,596,350,000 versus a total put value of 165,900,000 Combined total value = 1,870,762,250,000
Strike 3780 has a total call value of 1,921,028,900,000 versus a total put value of 124,250,000 Combined total value = 1,921,153,150,000
Strike 3800 has a total call value of 1,971,461,450,000 versus a total put value of 82,600,000 Combined total value = 1,971,544,050,000
Strike 3820 has a total call value of 2,021,894,000,000 versus a total put value of 41,300,000 Combined total value = 2,021,935,300,000
Strike 3840 has a total call value of 2,072,326,550,000 versus a total put value of 0 Combined total value = 2,072,326,550,000
Max-Pain Table for Stocks
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.
