What is Max Pain?

Max Pain, often known as the Max Pain Price, is the striking price associated with the majority of open options contracts (i.e., puts and calls).

Max Pain Theory

-> In accordance with this hypothesis, there is a single strike price, referred to as the maximum pain price, at which the greatest number of call and put writers have established positions. If the stock expires away from that strike price, it will suffer the greatest amount of loss.

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Analysis→Instrument Overview-> Options-> Max Pain

Additional Resource

What Is Max Pain and How To Interpret It? -> Link

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