Max pain options: meaning and a worked calculator example
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Max pain is an underlying price that minimizes the combined intrinsic value of outstanding calls and puts at a chosen expiration. It describes an options snapshot. It is not a forecast of the expiration price or a measurement of investors’ actual losses.
The name refers to the smallest aggregate expiration value for option holders. Their profit or loss also depends on premiums paid, previous trades and other positions, which this comparison does not include.
Max pain calculator: a three-strike example
The following is an invented example prepared October 5, 2026, with one hypothetical expiration on October 16, 2026. All contracts represent 100 shares. It uses no real ticker or production options chain.
| Strike | Call open interest | Put open interest |
|---|---|---|
| $95 | 20 contracts | 10 contracts |
| $100 | 50 contracts | 40 contracts |
| $105 | 30 contracts | 20 contracts |
At expiration, a call has intrinsic value when the underlying is above its strike; a put has intrinsic value when the underlying is below its strike. Standard equity options usually represent 100 shares, while adjusted contracts may differ. OIC’s options basics and options-pricing explanation describe these terms.
For this example, multiply each in-the-money price difference by its open interest and by 100, then add the call and put totals. This is an educational intrinsic-value comparison, excluding premiums, fees and other holdings.
| Hypothetical expiration price | Call intrinsic value | Put intrinsic value | Combined value |
|---|---|---|---|
| $90 | $0 | $75,000 | $75,000 |
| $95 | $0 | $40,000 | $40,000 |
| $97.50 | $5,000 | $25,000 | $30,000 |
| $100 | $10,000 | $10,000 | $20,000 |
| $102.50 | $27,500 | $5,000 | $32,500 |
| $105 | $45,000 | $0 | $45,000 |
| $110 | $95,000 | $0 | $95,000 |
At $100, only the $95 calls and $105 puts have intrinsic value:
- Calls:
($100 − $95) × 20 × 100 = $10,000. - Puts:
($105 − $100) × 20 × 100 = $10,000. - Combined:
$10,000 + $10,000 = $20,000.
$100 is this example’s unique minimum. Between the listed strikes, the total changes linearly: it falls toward $100, then rises beyond it. These figures compare intrinsic values; equity-option exercise ordinarily involves delivery of shares, whereas cash-settled index options have different settlement terms. OIC’s equity-versus-index comparison.
What if two strikes tie?
Change only the $105 put open interest from 20 to 70 contracts. The combined values at $95, $100 and $105 become $90,000, $45,000 and $45,000. Every price from $100 through $105 now shares the $45,000 minimum. At $102.50, for example, calls contribute $27,500 and puts $17,500.
A calculator should report tied strikes or the minimum range clearly. A single displayed strike can be one representative of a flat minimum; it does not establish that only one price minimizes the total.
Nearest expiration versus all expirations
The nearest-expiration max pain on this site accompanies a specific expiration date. Read both together: a value for one date is not a target for every subsequent session.
The all-expiration pooled value combines contracts with different expiration dates. It is a separate summary and does not describe the settlement of one actual expiration. Check the snapshot date too: open interest can change after the observation.
Does price move toward max pain?
This guide’s example demonstrates arithmetic, not predictive performance. Research by Ni, Pearson and Poteshman documented stock-price clustering near option strikes on expiration dates. That finding does not establish that stocks converge on the strike minimizing aggregate intrinsic value. Read the primary paper.
A test of a specific max-pain forecast needs dated observations available before expiration, a stated settlement-price comparison and a useful baseline. An attractive example selected after the event is not that test.
Our 2025 max-pain study compares archived Thursday levels with Friday’s reported underlying close, using Thursday’s close as an unchanged-price baseline. It publishes the weekly results, missing observations and uncertainty, and distinguishes the underlying close from official option settlement. The historical archive was reconstructed in September 2026; it is a retrospective comparison rather than a replay of forecasts published at the time.
Max pain versus gamma max and GEX flip
| Reference | What it describes |
|---|---|
| Max pain | Minimum aggregate intrinsic value for the stated expiration scope |
| Gamma max | The site’s model-derived reference for peak aggregate gamma |
| GEX flip | A confirmed sign crossing in the signed gamma-exposure model |
These levels can differ. None identifies the market’s future settlement price or proves actual dealer holdings.
Find current max-pain values
The SPY options snapshot and GME options snapshot display nearest-expiration max pain alongside its expiration and the snapshot’s data date. Compare those fields with the close, then use the nearest max pain screen to inspect other tickers. Closeness is a descriptive comparison, not a trading signal.
Related
Open interest · Gamma exposure · Methodology and limitations · All learning guides