| The Max Pain Calculator is based on the maximum pain theory which states that a stock's price tend towards the price at which there is the most option liability in the market. |
Why Use It
The tool can be helpful in devising trading strategies where you wish to see how much option liability exists in the market at each strike. It highlights the 'max pain' strike.
How to Use It
Select a stock from the Ticker selector, and an expiration date from the Expiry selector. Press the button to calculate the cumulative liability at each strike.
How It Works
The tool calculates, for each strike in the chain, the total value of all of the options which would expire worthless if the stock were to close at that strike on expiration day. This is based on the current open interest at each strike.
Select underlying company | Select option expiration |