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.

TCS

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.

Tata Consultancy Serv Lt

3319 +9.00 (0.27%)

L: 3296.1 H: 3327.1

Max Pain - TCS

25 Dec 2025 11:10 AM IST

Expiry

Max Pain for TCS is 3260

Historical data for TCS-3260-CE

LTP (3260 CE)

62.4 8.95

Open Interest

3605 -140

Historical data for TCS-3260-PE

LTP (3260 PE)

3 -3.45

Open Interest

2357 289

Strike 2600 has a total call value of 0 versus a total put value of 356,155,100,000 Combined total value = 356,155,100,000

Strike 2620 has a total call value of 31,150,000 versus a total put value of 343,877,100,000 Combined total value = 343,908,250,000

Strike 2640 has a total call value of 62,300,000 versus a total put value of 331,599,100,000 Combined total value = 331,661,400,000

Strike 2660 has a total call value of 93,450,000 versus a total put value of 319,335,450,000 Combined total value = 319,428,900,000

Strike 2680 has a total call value of 124,600,000 versus a total put value of 307,071,800,000 Combined total value = 307,196,400,000

Strike 2700 has a total call value of 155,750,000 versus a total put value of 294,808,150,000 Combined total value = 294,963,900,000

Strike 2720 has a total call value of 186,900,000 versus a total put value of 282,544,500,000 Combined total value = 282,731,400,000

Strike 2740 has a total call value of 218,050,000 versus a total put value of 270,309,200,000 Combined total value = 270,527,250,000

Strike 2760 has a total call value of 249,200,000 versus a total put value of 258,073,900,000 Combined total value = 258,323,100,000

Strike 2780 has a total call value of 280,350,000 versus a total put value of 245,865,550,000 Combined total value = 246,145,900,000

Strike 2800 has a total call value of 311,500,000 versus a total put value of 233,703,050,000 Combined total value = 234,014,550,000

Strike 2820 has a total call value of 344,400,000 versus a total put value of 221,693,150,000 Combined total value = 222,037,550,000

Strike 2840 has a total call value of 377,300,000 versus a total put value of 209,708,450,000 Combined total value = 210,085,750,000

Strike 2860 has a total call value of 410,200,000 versus a total put value of 197,811,950,000 Combined total value = 198,222,150,000

Strike 2880 has a total call value of 443,100,000 versus a total put value of 186,084,850,000 Combined total value = 186,527,950,000

Strike 2900 has a total call value of 476,000,000 versus a total put value of 174,557,950,000 Combined total value = 175,033,950,000

Strike 2920 has a total call value of 678,300,000 versus a total put value of 163,593,850,000 Combined total value = 164,272,150,000

Strike 2940 has a total call value of 880,950,000 versus a total put value of 152,667,550,000 Combined total value = 153,548,500,000

Strike 2960 has a total call value of 1,084,300,000 versus a total put value of 141,937,950,000 Combined total value = 143,022,250,000

Strike 2980 has a total call value of 1,292,900,000 versus a total put value of 131,371,450,000 Combined total value = 132,664,350,000

Strike 3000 has a total call value of 1,512,700,000 versus a total put value of 120,946,700,000 Combined total value = 122,459,400,000

Strike 3020 has a total call value of 1,913,800,000 versus a total put value of 111,202,000,000 Combined total value = 113,115,800,000

Strike 3040 has a total call value of 2,328,900,000 versus a total put value of 101,781,050,000 Combined total value = 104,109,950,000

Strike 3060 has a total call value of 2,786,700,000 versus a total put value of 92,505,000,000 Combined total value = 95,291,700,000

Strike 3080 has a total call value of 3,292,800,000 versus a total put value of 83,396,600,000 Combined total value = 86,689,400,000

Strike 3100 has a total call value of 3,841,950,000 versus a total put value of 74,467,750,000 Combined total value = 78,309,700,000

Strike 3120 has a total call value of 4,565,750,000 versus a total put value of 66,224,550,000 Combined total value = 70,790,300,000

Strike 3140 has a total call value of 5,395,600,000 versus a total put value of 58,214,450,000 Combined total value = 63,610,050,000

Strike 3160 has a total call value of 6,360,900,000 versus a total put value of 50,585,150,000 Combined total value = 56,946,050,000

Strike 3180 has a total call value of 7,610,050,000 versus a total put value of 43,247,400,000 Combined total value = 50,857,450,000

Strike 3200 has a total call value of 9,083,550,000 versus a total put value of 36,212,400,000 Combined total value = 45,295,950,000

Strike 3220 has a total call value of 11,950,050,000 versus a total put value of 30,335,900,000 Combined total value = 42,285,950,000

Strike 3240 has a total call value of 15,308,300,000 versus a total put value of 24,872,400,000 Combined total value = 40,180,700,000

Strike 3260 has a total call value of 19,079,550,000 versus a total put value of 19,985,700,000 Combined total value = 39,065,250,000

Strike 3280 has a total call value of 24,112,550,000 versus a total put value of 15,923,950,000 Combined total value = 40,036,500,000

Strike 3300 has a total call value of 29,785,000,000 versus a total put value of 12,499,550,000 Combined total value = 42,284,550,000

Strike 3320 has a total call value of 37,206,750,000 versus a total put value of 10,469,900,000 Combined total value = 47,676,650,000

Strike 3340 has a total call value of 45,702,300,000 versus a total put value of 9,012,500,000 Combined total value = 54,714,800,000

Strike 3360 has a total call value of 55,041,700,000 versus a total put value of 7,864,150,000 Combined total value = 62,905,850,000

Strike 3380 has a total call value of 64,887,550,000 versus a total put value of 6,855,450,000 Combined total value = 71,743,000,000

Strike 3400 has a total call value of 75,393,850,000 versus a total put value of 5,913,250,000 Combined total value = 81,307,100,000

Strike 3420 has a total call value of 87,289,300,000 versus a total put value of 5,243,700,000 Combined total value = 92,533,000,000

Strike 3440 has a total call value of 99,461,950,000 versus a total put value of 4,605,300,000 Combined total value = 104,067,250,000

Strike 3460 has a total call value of 112,179,900,000 versus a total put value of 3,990,000,000 Combined total value = 116,169,900,000

Strike 3480 has a total call value of 125,087,900,000 versus a total put value of 3,379,600,000 Combined total value = 128,467,500,000

Strike 3500 has a total call value of 139,467,650,000 versus a total put value of 2,809,800,000 Combined total value = 142,277,450,000

Strike 3520 has a total call value of 154,110,600,000 versus a total put value of 2,240,000,000 Combined total value = 156,350,600,000

Strike 3540 has a total call value of 169,135,050,000 versus a total put value of 1,706,250,000 Combined total value = 170,841,300,000

Strike 3560 has a total call value of 184,174,200,000 versus a total put value of 1,172,500,000 Combined total value = 185,346,700,000

Strike 3580 has a total call value of 199,373,650,000 versus a total put value of 659,050,000 Combined total value = 200,032,700,000

Strike 3600 has a total call value of 214,573,100,000 versus a total put value of 145,600,000 Combined total value = 214,718,700,000

Strike 3620 has a total call value of 229,933,200,000 versus a total put value of 74,900,000 Combined total value = 230,008,100,000

Strike 3640 has a total call value of 245,293,300,000 versus a total put value of 4,200,000 Combined total value = 245,297,500,000

Strike 3660 has a total call value of 260,707,300,000 versus a total put value of 3,150,000 Combined total value = 260,710,450,000

Strike 3680 has a total call value of 276,121,300,000 versus a total put value of 2,100,000 Combined total value = 276,123,400,000

Strike 3700 has a total call value of 291,541,600,000 versus a total put value of 1,050,000 Combined total value = 291,542,650,000

Strike 3720 has a total call value of 306,961,900,000 versus a total put value of 0 Combined total value = 306,961,900,000

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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