Max Pain — NIFTY & Bank Nifty Option Writer Strikes

What is Max Pain?

Max Pain is the strike price at which option sellers (writers) experience the minimum total loss — and equivalently, option buyers experience the maximum total loss — if the underlying expires exactly at that level. Since writers are usually institutional players, Max Pain often acts as a magnet price that spot tends to gravitate toward as expiry approaches.

Traders use Max Pain as one input among many. When spot is far from Max Pain with a high PCR, an expiry-day move toward Max Pain becomes more likely. Combined with support/resistance levels derived from put/call OI concentration, it helps identify probable pinning zones.

Disclaimer: Max Pain is a historical concept — not a guaranteed target. Always use with technical analysis and risk management. Past behavior does not indicate future performance.