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.

HDFCBANK

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.

Hdfc Bank Ltd

987.1 -7.20 (-0.72%)

L: 987 H: 996

Max Pain - HDFCBANK

17 Dec 2025 10:06 AM IST

Live

Expiry

Max Pain for HDFCBANK is 1000

Historical data for HDFCBANK-1000-CE

LTP (1000 CE)

7.65 -2.8

Open Interest

12964 1893

Historical data for HDFCBANK-1000-PE

LTP (1000 PE)

16.35 4.5

Open Interest

6393 -207

Strike 860 has a total call value of 0 versus a total put value of 272,801,650,000 Combined total value = 272,801,650,000

Strike 865 has a total call value of 1,650,000 versus a total put value of 261,176,575,000 Combined total value = 261,178,225,000

Strike 870 has a total call value of 3,300,000 versus a total put value of 249,551,500,000 Combined total value = 249,554,800,000

Strike 875 has a total call value of 4,950,000 versus a total put value of 237,955,300,000 Combined total value = 237,960,250,000

Strike 880 has a total call value of 6,600,000 versus a total put value of 226,359,100,000 Combined total value = 226,365,700,000

Strike 885 has a total call value of 8,250,000 versus a total put value of 214,798,100,000 Combined total value = 214,806,350,000

Strike 890 has a total call value of 9,900,000 versus a total put value of 203,237,100,000 Combined total value = 203,247,000,000

Strike 895 has a total call value of 11,550,000 versus a total put value of 191,725,600,000 Combined total value = 191,737,150,000

Strike 900 has a total call value of 13,200,000 versus a total put value of 180,214,100,000 Combined total value = 180,227,300,000

Strike 905 has a total call value of 170,225,000 versus a total put value of 169,121,700,000 Combined total value = 169,291,925,000

Strike 910 has a total call value of 327,250,000 versus a total put value of 158,029,300,000 Combined total value = 158,356,550,000

Strike 915 has a total call value of 486,475,000 versus a total put value of 147,246,000,000 Combined total value = 147,732,475,000

Strike 920 has a total call value of 645,700,000 versus a total put value of 136,462,700,000 Combined total value = 137,108,400,000

Strike 925 has a total call value of 807,400,000 versus a total put value of 125,961,825,000 Combined total value = 126,769,225,000

Strike 930 has a total call value of 969,100,000 versus a total put value of 115,493,400,000 Combined total value = 116,462,500,000

Strike 935 has a total call value of 1,132,175,000 versus a total put value of 105,382,475,000 Combined total value = 106,514,650,000

Strike 940 has a total call value of 1,295,250,000 versus a total put value of 95,395,850,000 Combined total value = 96,691,100,000

Strike 945 has a total call value of 1,481,975,000 versus a total put value of 85,787,075,000 Combined total value = 87,269,050,000

Strike 950 has a total call value of 1,675,025,000 versus a total put value of 76,265,200,000 Combined total value = 77,940,225,000

Strike 955 has a total call value of 1,965,150,000 versus a total put value of 67,465,475,000 Combined total value = 69,430,625,000

Strike 960 has a total call value of 2,256,650,000 versus a total put value of 58,817,275,000 Combined total value = 61,073,925,000

Strike 965 has a total call value of 2,635,050,000 versus a total put value of 50,571,675,000 Combined total value = 53,206,725,000

Strike 970 has a total call value of 3,022,250,000 versus a total put value of 42,576,600,000 Combined total value = 45,598,850,000

Strike 975 has a total call value of 3,502,950,000 versus a total put value of 35,792,075,000 Combined total value = 39,295,025,000

Strike 980 has a total call value of 4,027,100,000 versus a total put value of 29,323,800,000 Combined total value = 33,350,900,000

Strike 985 has a total call value of 4,887,850,000 versus a total put value of 23,765,500,000 Combined total value = 28,653,350,000

Strike 990 has a total call value of 5,941,100,000 versus a total put value of 18,449,200,000 Combined total value = 24,390,300,000

Strike 995 has a total call value of 7,931,000,000 versus a total put value of 13,994,200,000 Combined total value = 21,925,200,000

Strike 1000 has a total call value of 10,657,350,000 versus a total put value of 10,086,175,000 Combined total value = 20,743,525,000

Strike 1005 has a total call value of 16,948,800,000 versus a total put value of 7,936,225,000 Combined total value = 24,885,025,000

Strike 1010 has a total call value of 24,157,650,000 versus a total put value of 6,238,100,000 Combined total value = 30,395,750,000

Strike 1015 has a total call value of 33,076,450,000 versus a total put value of 5,143,325,000 Combined total value = 38,219,775,000

Strike 1020 has a total call value of 42,657,450,000 versus a total put value of 4,203,925,000 Combined total value = 46,861,375,000

Strike 1025 has a total call value of 54,531,125,000 versus a total put value of 3,596,175,000 Combined total value = 58,127,300,000

Strike 1030 has a total call value of 66,767,525,000 versus a total put value of 3,047,000,000 Combined total value = 69,814,525,000

Strike 1035 has a total call value of 79,875,675,000 versus a total put value of 2,612,775,000 Combined total value = 82,488,450,000

Strike 1040 has a total call value of 93,412,550,000 versus a total put value of 2,215,400,000 Combined total value = 95,627,950,000

Strike 1045 has a total call value of 107,492,550,000 versus a total put value of 1,892,550,000 Combined total value = 109,385,100,000

Strike 1050 has a total call value of 121,762,850,000 versus a total put value of 1,587,025,000 Combined total value = 123,349,875,000

Strike 1055 has a total call value of 136,929,100,000 versus a total put value of 1,417,350,000 Combined total value = 138,346,450,000

Strike 1060 has a total call value of 152,215,800,000 versus a total put value of 1,247,675,000 Combined total value = 153,463,475,000

Strike 1065 has a total call value of 167,823,425,000 versus a total put value of 1,099,725,000 Combined total value = 168,923,150,000

Strike 1070 has a total call value of 183,528,400,000 versus a total put value of 957,000,000 Combined total value = 184,485,400,000

Strike 1075 has a total call value of 199,478,950,000 versus a total put value of 823,350,000 Combined total value = 200,302,300,000

Strike 1080 has a total call value of 215,429,500,000 versus a total put value of 689,700,000 Combined total value = 216,119,200,000

Strike 1085 has a total call value of 231,914,650,000 versus a total put value of 561,550,000 Combined total value = 232,476,200,000

Strike 1090 has a total call value of 248,399,800,000 versus a total put value of 433,400,000 Combined total value = 248,833,200,000

Strike 1095 has a total call value of 265,828,200,000 versus a total put value of 305,250,000 Combined total value = 266,133,450,000

Strike 1100 has a total call value of 283,256,600,000 versus a total put value of 177,100,000 Combined total value = 283,433,700,000

Strike 1105 has a total call value of 301,357,925,000 versus a total put value of 139,150,000 Combined total value = 301,497,075,000

Strike 1110 has a total call value of 319,459,250,000 versus a total put value of 101,200,000 Combined total value = 319,560,450,000

Strike 1115 has a total call value of 337,639,775,000 versus a total put value of 63,250,000 Combined total value = 337,703,025,000

Strike 1120 has a total call value of 355,820,300,000 versus a total put value of 25,300,000 Combined total value = 355,845,600,000

Strike 1125 has a total call value of 374,166,375,000 versus a total put value of 12,650,000 Combined total value = 374,179,025,000

Strike 1130 has a total call value of 392,512,450,000 versus a total put value of 0 Combined total value = 392,512,450,000

Max-Pain Table for Stocks

Max-Pain Table Expiry

Note:- click on symbol to see more detailed view

Max Pain Table (Stocks)
Symbol	Symbol Ltp	Max Pain
360ONE	1136.5	1140
ABB	5230.5	5200
ABCAPITAL	348.15	350
ADANIENSOL	988.2	990
ADANIENT	2226.2	2300
ADANIGREEN	1022	1020
ADANIPORTS	1490.7	1500
ALKEM	5672	5700
AMBER	6748	6800
AMBUJACEM	546.05	555
ANGELONE	2518.8	2600
APLAPOLLO	1721.5	1740
APOLLOHOSP	7016	7200
ASHOKLEY	165.85	160
ASIANPAINT	2799.3	2800
ASTRAL	1444.3	1460
AUBANK	992.7	960
AUROPHARMA	1182.5	1200
AXISBANK	1226.7	1240
BAJAJ-AUTO	8941.5	9000
BAJAJFINSV	2031.4	2060
BAJFINANCE	1005.7	1020
BANDHANBNK	150.05	150
BANKBARODA	285	290
BANKINDIA	141.35	143
BDL	1339	1400
BEL	386.15	400
BHARATFORG	1402.6	1400
BHARTIARTL	2097.5	2100
BHEL	277.85	280
BIOCON	386.1	390
BLUESTARCO	1814.4	1780
BOSCHLTD	36245	36500
BPCL	369.5	365
BRITANNIA	6108.5	6000
BSE	2645.5	2700
CAMS	751	780
CANBK	150.15	149
CDSL	1488	1560
CGPOWER	681	680
CHOLAFIN	1710.2	1700
CIPLA	1495.2	1520
COALINDIA	384	384.75
COFORGE	1871.9	1840
COLPAL	2125	2180
CONCOR	498.2	520
CROMPTON	251.85	265
CUMMINSIND	4500.3	4500
CYIENT	1138	1160
DABUR	496.25	505
DALBHARAT	2047.8	2040
DELHIVERY	401	410
DIVISLAB	6361.5	6400
DIXON	13370	13750
DLF	684.85	710
DMART	3843.4	3900
DRREDDY	1271.2	1270
EICHERMOT	7150.5	7100
ETERNAL	285.2	295
EXIDEIND	362.35	375
FEDERALBNK	263.75	260
FORTIS	874.6	890
GAIL	169.32	175
GLENMARK	1962.5	1940
GMRAIRPORT	102.65	102
GODREJCP	1186.3	1160
GODREJPROP	2022.1	2080
GRASIM	2789	2800
HAL	4235.9	4450
HAVELLS	1397.5	1440
HCLTECH	1656.9	1660
HDFCAMC	2570.8	2620
HDFCBANK	987.1	1000
HDFCLIFE	754.75	770
HEROMOTOCO	5890.5	6000
HFCL	64.81	68
HINDALCO	844.5	820
HINDPETRO	468.5	460
HINDUNILVR	2281.7	2300
HINDZINC	581.75	550
HUDCO	210.05	220
ICICIBANK	1347.1	1370
ICICIGI	1945.5	1980
ICICIPRULI	635.85	630
IDEA	11.28	11
IDFCFIRSTB	83.49	82
IEX	140.74	145
IIFL	567.25	560
INDHOTEL	723.7	740
INDIANB	776.35	820
INDIGO	4947	5000
INDUSINDBK	838.9	850
INDUSTOWER	406	410
INFY	1596.1	1600
INOXWIND	126.31	130
IOC	168.33	166
IRCTC	668.15	690
IREDA	133.1	140
IRFC	111.73	116
ITC	401.95	405
JINDALSTEL	1006.4	1020
JIOFIN	293.55	305
JSWENERGY	478.3	490
JSWSTEEL	1086.4	1130
JUBLFOOD	556.3	580
KALYANKJIL	478.5	480
KAYNES	4196	4400
KEI	4071.2	4100
KFINTECH	1028.5	1060
KOTAKBANK	2178.3	2160
KPITTECH	1168.7	1200
LAURUSLABS	1013.8	1000
LICHSGFIN	526.1	550
LICI	856	880
LODHA	1076.7	1100
LT	4057.9	4040
LTF	302.25	302.5
LTIM	6225	6200
LUPIN	2117	2080
M&M	3619.2	3650
MANAPPURAM	284.7	280
MANKIND	2103.3	2200
MARICO	737.2	740
MARUTI	16398	16300
MAXHEALTH	1059	1100
MAZDOCK	2385	2550
MCX	10158	10100
MFSL	1659.2	1700
MOTHERSON	119.61	116
MPHASIS	2870	2900
MUTHOOTFIN	3831.3	3800
NATIONALUM	279.1	270
NAUKRI	1354.7	1360
NBCC	110.84	112
NCC	157.27	167.5
NESTLEIND	1236.4	1240
NHPC	75.5	78
NMDC	77.29	77
NTPC	321.25	325
NUVAMA	7220.5	7200
NYKAA	246	255
OBEROIRLTY	1627.2	1640
OFSS	7804	8000
OIL	402	410
ONGC	231.7	239
PAGEIND	36135	37000
PATANJALI	536.2	545
PAYTM	1276.6	1300
PERSISTENT	6297	6300
PETRONET	267.15	278
PFC	337.2	355
PGEL	562.7	560
PHOENIXLTD	1785.1	1740
PIDILITIND	1460.9	1480
PIIND	3226	3350
PNB	118.35	120
PNBHOUSING	910.55	910
POLICYBZR	1787.6	1840
POLYCAB	7088.5	7200
POWERGRID	261.2	270
POWERINDIA	19445	19500
PPLPHARMA	169.12	180
PRESTIGE	1606.3	1660
RBLBANK	297.85	310
RECLTD	335.1	350
RELIANCE	1542.5	1540
RVNL	308.05	315
SAIL	129.75	133
SAMMAANCAP	145.15	155
SBICARD	839.05	870
SBILIFE	2018.7	2020
SBIN	974.6	970
SHREECEM	26105	26500
SHRIRAMFIN	858	850
SIEMENS	3150.8	3200
SOLARINDS	11895	12500
SONACOMS	486.1	500
SRF	3006.9	2950
SUNPHARMA	1778	1800
SUPREMEIND	3377.4	3400
SUZLON	52.37	54
SYNGENE	644.5	650
TATACONSUM	1176.8	1170
TATAELXSI	5006	5100
TATAMOTORS	0	320
TATAPOWER	381.4	390
TATASTEEL	170.44	170
TATATECH	648.6	670
TCS	3220.9	3200
TECHM	1577.4	1540
TIINDIA	2632.2	2700
TITAGARH	784.65	800
TITAN	3928.1	3880
TMPV	347.95	360
TORNTPHARM	3743.7	3750
TORNTPOWER	1295	1300
TRENT	4081	4200
TVSMOTOR	3638.5	3600
ULTRACEMCO	11531	11700
UNIONBANK	153.4	155
UNITDSPR	1445.7	1440
UNOMINDA	1256.1	1280
UPL	749	750
VBL	474.1	470
VEDL	569.3	550
VOLTAS	1387.4	1380
WIPRO	261.05	255
YESBANK	21.54	22
ZYDUSLIFE	917.5	930

Note:

Stock LTP > Max Pain	Bearish Trend
Stock LTP < Max Pain	Bullish Trend

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.

Related Pages for HDFCBANK

HDFCBANK

360ONE

ABB

ABCAPITAL

ADANIENSOL

ADANIENT

ADANIGREEN

ADANIPORTS

ALKEM

AMBER

AMBUJACEM

ANGELONE

APLAPOLLO

APOLLOHOSP

ASHOKLEY

ASIANPAINT

ASTRAL

AUBANK

AUROPHARMA

AXISBANK

BAJAJ-AUTO

BAJAJFINSV

BAJFINANCE

BANDHANBNK

BANKBARODA

BANKEX

BANKINDIA

BANKNIFTY

BDL

BEL

BHARATFORG

BHARTIARTL

BHEL

BIOCON

BLUESTARCO

BOSCHLTD

BPCL

BRITANNIA

BSE

CAMS

CANBK

CDSL

CGPOWER

CHOLAFIN

CIPLA

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COFORGE

COLPAL

CONCOR

COPPER

CROMPTON

CRUDEOIL

CRUDEOILM

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CYIENT

DABUR

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DIVISLAB

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DLF

DMART

DRREDDY

EICHERMOT

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EXIDEIND

FEDERALBNK

FINNIFTY

FORTIS

GAIL

GBPINR

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GLENMARK

GMRAIRPORT

GODREJCP

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GOLD