The max pain is the price at which the stock can cause the highest level of financial losses for all the options holders who have the contracts at that strike price at the time of expiration.
The situation is defined with the stock price (the underlying asset) engaged in the strike price of the options contract at the date of expiry.
The max pain aims to determine how options traders can suffer big losses if the underlying asset’s spot price locks in with the contract’s strike price.
Why to use the max pain chart?
By using the Options Max pain chart feature in options trading, you can now easily know the strike price at which maximum losses can happen when a contract expires on a particular strike price.
All you need to do is to select the contract in the contract section, it will automatically plot the Nifty max pain, Banknifty max pain and other options max pain.
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