Options Max Pain Calculator
Estimate the max-pain strike from open interest across three strikes — the expiry price where the total value of calls and puts held is smallest.
How it works
Value(P) = Σ callOI·max(0, P − strike)·100 + Σ putOI·max(0, strike − P)·100 · Max pain = strike P that minimises Value(P)
Max pain is the expiry price at which the total intrinsic value of all outstanding calls and puts is at its minimum — the point where the largest number of options expire worthless and option holders, in aggregate, are worst off. This simplified version scans the strikes you enter; a full calculation sweeps every listed strike. It is a folk indicator, not a law: it describes where open interest is heaviest, not where a stock must land.
Worked example
With heavy put open interest at $95 and heavy call open interest at $105, pinning the price at $100 leaves both the far puts and far calls with less intrinsic value than pinning at either wing. The $100 strike shows the lowest total owed, so it is the max-pain level.
Sources: Max pain (Wikipedia)
Frequently asked questions
Does the stock actually gravitate to max pain?
There is a theory that market-maker hedging nudges prices toward max pain into expiry, but the evidence is weak and mixed. Treat it as one data point about where open interest sits, not a prediction.
Why only three strikes?
This is a simplified tool for a quick read. Real max-pain calculations use the full option chain — every strike’s call and put open interest. Enter the three strikes with the largest open interest around the money for a reasonable approximation.
Should I use open interest or volume?
Open interest — the number of contracts still outstanding — is the right input, because max pain is about what holders would be owed at expiry, not intraday trading activity.
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Educational estimate using a simplified Black–Scholes / options model — no dividends, no early-exercise, no fees or slippage. Options are high-risk. Not investment advice.