Max Pain
The max pain theory suggests that stock prices tend to gravitate toward the strike price where the total dollar value of all outstanding options contracts would cause maximum financial loss to option holders at expiration.
Max Pain Calculation
For each strike: Sum of (ITM call value * OI) + (ITM put value * OI). Max pain = strike with lowest total.- Works best for stocks with high options open interest
- Effect is strongest in the final days before expiration
- Not a guaranteed target — just a gravitational tendency
- Distance from max pain indicates potential expiration-week direction
Check max pain for any stockView Max Pain