Max Pain Analysis
Real-time options positioning & price magnets
What Is Max Pain Theory?
Max Pain Theory is an options market concept suggesting that, at expiration, the price of an underlying stock tends to gravitate toward the strike price at which the largest number of options (both calls and puts) will expire worthless. This "point of maximum pain" minimizes payouts by option writers (often market makers) and maximizes the loss for the greatest number of option holders.
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Quick Analysis
Instant max pain calculation for liquid symbols
Advanced Analysis
Process CBOE data with full Greeks analysis
Disclaimer: Market Signal Intelligence is a research, guidance, and education platform. Our mission is to provide members with valuable, reliable insights designed not only to expand trading knowledge but also to improve trading outcomes.
We understand that market makers typically take the opposite side of retail options trades. To manage their own risk, they often buy or sell the underlying stock. Around monthly options expiration, this can create unique conditions in which market makers deploy capital to temporarily influence prices—sometimes inflicting the greatest losses on the largest number of option holders. This short-term inefficiency is what we seek to highlight for our members. While max pain is not perfect and should never be viewed as a guaranteed predictor of future prices, we use it as one of many indicators: a directional clue to help frame market expectations.
Please note: We are not Registered Investment Advisors, and nothing we publish should be interpreted as a recommendation to buy or sell any financial security. You should always consult your own financial adviser before making any investment decisions. Additionally, all of our data is sourced from the CBOE or third-party option data providers, and while we strive for accuracy, we cannot assume responsibility for its completeness or precision.