ZINC
Zinc
Max pain for ZINC
29 Oct 2024 09:20 PM IST
Max Pain for ZINC is 290
Strike 280 has a total call value of 0 versus a total put value of 137,500 Combined total value = 137,500
Strike 282.5 has a total call value of 2,500 versus a total put value of 97,500 Combined total value = 100,000
Strike 285 has a total call value of 5,000 versus a total put value of 57,500 Combined total value = 62,500
Strike 287.5 has a total call value of 18,750 versus a total put value of 32,500 Combined total value = 51,250
Strike 290 has a total call value of 32,500 versus a total put value of 7,500 Combined total value = 40,000
Strike 292.5 has a total call value of 71,250 versus a total put value of 3,750 Combined total value = 75,000
Strike 295 has a total call value of 110,000 versus a total put value of 0 Combined total value = 110,000
Strike 297.5 has a total call value of 148,750 versus a total put value of 0 Combined total value = 148,750
Strike 300 has a total call value of 187,500 versus a total put value of 0 Combined total value = 187,500
Strike 302.5 has a total call value of 272,500 versus a total put value of 0 Combined total value = 272,500
Strike 305 has a total call value of 357,500 versus a total put value of 0 Combined total value = 357,500
Strike 307.5 has a total call value of 442,500 versus a total put value of 0 Combined total value = 442,500
Strike 310 has a total call value of 527,500 versus a total put value of 0 Combined total value = 527,500
What is Max Pain?
Max pain, or the max pain price, is the strike price with the most open contract puts and calls - and the price at which the stock would cause financial losses for the largest number of option holders at expiration.
Calculating Max Pain
Max pain is a simple but time consuming calculation. Essentially, it is the sum of the outstanding put and call dollar value of each in-the-money strike price. For each in-the-money strike price for both puts and calls:
- Find the difference between stock price and strike price
- Multiply the result by open interest at that strike
- Add together the dollar value for the put and call at that strike
- Repeat for each strike price
- Find the highest value strike price. This price is equivalent to max pain price.
How can a trader benefit?
As the option expiration approaches, option writers will try to buy or sell shares of stock to drive the price toward a closing price that is profitable for them, or at least to hedge their payouts to option holders. Call writers sell shares to drive share price down and Put holders buy shares to drive share price up. The max pain strike price exists somewhere in the middle.