Android
Zerodha Broker (Free Delivery)

India's No. 1 Broker with Best Software Trade @ Flat Rs 20

Open Instant Account
market update arrow India's neighbours beat first wave, but Covid-19 cases are rising again arrow Toyota halts operations at Karnataka plant again as union strike continues arrow MARKET LIVE: Sensex up 400 pts, Nifty tests 13,050 on broad-based buying arrow MARKET LIVE: Sensex up 400 pts, Nifty tests 13,050 on broad-based buying arrow Affordable Covid-19 vaccines will test world's intellectual property regime arrow AAVAS Financiers gains 6% in two days after stake sale by AU Small Fin Bank arrow DATA STORY: Punjab has worst case fatality rate at 3.15%, Maharashtra's at 2.61% arrow Good performance masks problem assets for Indian banks, says S&P arrow Coronavirus LIVE updates: India cases at 9,177,840; death toll hits 134,254 arrow Nifty hits 13,000-mark, Sensex at record peak: Is it time to book profits? arrow Nifty hits 13,000-mark, Sensex at record peak: Is it time to book profits? arrow NSE declares Karvy Stock Broking as defaulter, expels from membership arrow NSE declares Karvy Stock Broking as defaulter, expels from membership arrow Latest news LIVE: Coastal parts of Chennai on alert ahead of Cyclone Nivar arrow How Bill Gates is working with WHO, drugmakers to defeat the coronavirus arrow PM Modi holds virtual meet with states over coronavirus situation arrow Granules India shares gain 5%, hit record high on heavy volumes arrow Mahindra & Mahindra hits 52-week high on strong business outlook arrow Solar power tariff touches record low of Rs 2 per unit in SECI auction arrow Bharti Infratel up 28% in 3 days on completion of Indus Tower merger deal arrow Xiaomi Mi 10T Pro review: Great screen, cameras and efficacy, but bulky arrow Donald Trump virtually concedes defeat, agrees to Biden transition arrow Diabetic eye disease associated with five-fold risk of severe coronavirus arrow Best of BS Opinion: Optimism on renewables, digital governance, and more arrow Maharashtra makes Covid-19 test must for passengers coming from 4 states

PEL : Max Pain Live Chart For Derivative Stocks | Nifty Trader

Last Data Refresh: Tuesday 11/24/2020 2:29:02 PM GMT+0530 (India Standard Time)

Click on the stock symbol below to see Open Interest Max Pain Chart Live.

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?

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 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.

Latest News हिंदी समाचार
ad