What is Option Pain?
Before understanding “Options Max Pain Theory”, it is important to understand the meaning of “Options Pain”.
It is seen that 90%+ options expire out of the money. Since most options buyers lose money in options trading, the price of the underlying stock somehow must be adjusted / manipulated to close in a way that benefits option writers at the time of options expiry.
The loss incurred by options buyers is also termed as “Options Pain” for our discussion.
What is Options Max Pain Theory?
Options Max Pain Theory suggests, “On option expiration day, the underlying stock price often moves toward a point that brings maximum loss to option buyers.”
How to calculate Options Max Pain Strike Price?
We need to calculate the strike the price at which the option buyer loses the maximum amount of money. This is also the point at which option writers will payout the least amount of money.
Illustration coming soon…
How can a trader benefit from “Max Pain Theory”?
Traders can utilize this concept to their advantage. Option writing can be done near expiry based on this theory, provided other technical indicators also favor the trade.
No trade should be taken without extensive study (of technicals or fundamentals of the underlying).
Interpretation of the above chart:
With the help of above charts you can identify the strike price corresponding to max pain point in options. The “Options Max Pain” charts are available for all derivative stocks in the “Options Max Pain Chart” above.
AAP says
Is this above chart taking into consideration for open Interest of all expiry or only near month expiry?
Is it possible to zoom into the above chart to a range between say 6500 to 10000.
RAJEEV SINGH says
PLS SHARE YOUR ILLUSTRATION, HOW IS CALCULATED FOR NIFTY.
Rajeev
8826466911
RAJEEV SINGH says
PLS SHARE YOUR ILLUSTRATION, HOW OPTION PAIN IS CALCULATED FOR NIFTY.
Rajeev
8826466911
KASHYAP says
Dear sir,
Everything about your data is so useful and one can trust about your research.
But I found that max pain in castrol India is 380 which your chart is showing 390 . I just analysis that ..
Correct me if I wrong.pardon me if I m wrong please.
Date 17 Dec 2016
Pradeep says
The difference in max pain is so small for the above that it might be shifting between 380 and 390.
When the difference is so small do not rely on “max pain” too much.
AAP says
Thank you for zooming the chart to 6500-10000.
Rajesh Rekhani says
Bank Nifty has now weekly options. Max pain as shown above for BN is for weekly or monthly?
Dr. RAJESH KUMAR SATPATHY says
increaseindustrywise exposer
ULHAS GHUGARDARE says
IF you can give values of MAXIMUM PAIN in excel format for all futures then it will be easy to come to conclusion on which call or put to be bought.
pravin bardolia says
i cant understand this chart
Rahul says
Hi Team,
I would like to have all the Max Pain Prediction from Nifty trader for for past 1 year & the actual expiry data.
Please let me know if I can contact you guys or email you.
RAMU says
Hi sir, is it banknifty weekly contracts max-pain or monthly?
Rahul says
Your Max Pain calculation isn’t live, this seems wrong to me first time.
The analysis show Max Pain should be around 21000. Please write back with your calculation behind Max Pain.
Shrinath Rasane says
How calculate option max pain chart
jegan says
Max Pain is not displayed right now. It is in loading state forever. can you correct it?
srinivasan says
I find that today many of the menu items do not work in your website.. The screen goes on and on without displaying anything, max pain points and option charts in particular.
Vidyadhar Belvalkar says
The BankNifty data used is for monthly expiry or the weekly expiry ?
Alok Kr Mukherjee says
What is CP & PP. How Pain is calculated. How We can predict the direction of Nifty from the Chart.
DEEPAK ARORA says
I ALSO WANT TO KNOW WHAT IS CP AND PP ??
Anonymous says
CP – total call positions for given strike
PP – total Put positions for given strike
https://zerodha.com/varsity/chapter/max-pain-pcr-ratio/
Alok Kr Mukherjee says
CP and PP full form pl.
How to know instantly that CALL or PUT will be profit making for a day trader
Alok Kr Mukherjee says
Not getting replies
girish says
left side captions overlap rightside material making it dficult to read matter on RHS
Prakash says
Todays in bank nifty 25000 max pain level in ur chart. v have to buy pe if current price of bank nifty above 25000? is this way?
RAMU says
is it bank nifty weekly contracts max-pain or monthly?
Mahadevan says
Yesterday ie.26/10/2017 your maxpain prediction for NIFTY was 10250 whereas the market ended at 10343. Can you please explain why the calculation went wrong. Kindly reply please so that we can understand the concept more clearly.
Omran Indraws says
how may i contact you ? any email ?
Pradeep says
please email to care@niftytrader.in for any feedback, suggestions or queries.
Sankar says
Please try to include USDINR in the above list
As you have the framework and data available
VD says
Trying to load max pain graphs from last two days but its not working. Please help. Can’t you publish an excel sheet with max pain for all stocks?
Arun says
takes years to load …
srinivasan says
For the last few days the option pain charts r not getting loaded on the screen..I am not sure if someone is attending to it..
I have a suggestion to make..Your site seem to be undergoing changes very frequently..and changes are made without really testing the changes to maintain integrity with whatever features already there. Request that changes be loaded only after a thorough integration testing..
As oyherwise people like me who use your site on a regular basis will be forced to move over to some other sites.
Regards
GS
VD says
I also faced same issues and that’s why I have made my own excel.
You seem to be following it from long time . One question for you.. Does this max pain really works? As per current data, it is at 10100 for nifty. Will nifty fall by 400 points in next three sessions?
Alok Kumar Mukherjee says
What happened to this site. No charts are displyed. Only twinkle twinkle little red and blue circles
Amit B says
Chart is not Loading now
Raghib Pervez says
I like the comments ‘
What is the process to trade in Singapore exchange.
PRAKASH TODKAR says
WHAT ARE THE SUBSCRIPTION CHARGES I HAVE TO PAY TO OBTAIN THE REAL TIME DATA
anand priy says
Please include new addition in derivative sections in Max pain eg rbnaval
Bhausaheb says
Your option pain charts are very useful.
I wonder whether there is different chart for weekly option for bank nifty, say 15 February
srinivasan says
I am plainly surprised..
The comment I posted yesterday..is gone missing.. Hows that?
It was about ur Max pain charts figures have been showing the same numbers for the last 4 days..Anyone looking into that?
GS
srinivasan says
Hello,
Your website was inaccessibe for quite a few days now.
From yesterday it started functioning..But I see that max pain charts display the same values for the last two days..Are u aware of it?
Srinivasan
srinivasan says
Sir,
Ur site is displaying WRONG max pain numbers for the scrips.. Request you to either correct it or stop showing wrong figures..
srinivasan says
Maxpain numbers displayed are wrong..For Nifty and banknifty max pain is not even displayed..
srinivasan says
Nifty has added BajajFinserv in its component..
But I dont find that scrip in your FnO list ..unable to get the max pain number..
srinivasan says
is there a way to view historical Max pain value for a stock/index?
Ajit says
Thanks! Great Job!!
Mr. Surendra Bhaskar says
Can you also please devise a system chart which will show the ” Max. Gain” , which will accrue to the Option Buyers, especially for Bank nifty expiry day?. Thanks
T.KARTHIKEYAN says
Sir,happy to have excellent information on max pain details,it will be more convenient, if we have it in a table formats containing script/index,date,open interest percentage,call,put details,banperiod indication,such that,daywise changes comparable for a single expiry month.
It will help to make reliability & wise decision.
Thank you.
T.KARTHIKEYAN
94439 13483
HARSHVARDHAN DUBEY says
Respected sir ,
Iam watch max pain chart many days but every day moment Nifty 50.strike price10500 .why are not change this moment.
Sameer salvi says
Can I get backdated (historical) maxpain price for all nse future.
Sundararaman K iyer says
Why Maxpain chart of Nifty is showing wrong chart?