Nifty Max Pain – Live
What is Max Pain/Option Pain?
Max pain is the point where option buyers feel “maximum pain/loss” or will stand to lose the most money and Option sellers, on the other hand, may stand to reap the most reward. In general, 90% of the options expire worthless, hence option writers/sellers tend to make money more often, more consistently than the option buyers.
How to Calculate Nifty Max Pain (of Nifty)?
Follow the below steps to calculate Max Pain of Nifty (Nifty Max Pain) manually.
Step 1: List down all the strikes of Nifty and note down its Call and Put Open Interest corresponding to each Strike.
Step 2: For each Strike, assume that the Nifty contract ends at that Strike on expiry.
Step 3: Calculate how much money is lost by the Option Writers/Sellers (both Call and Put Option).
Step 4: Add up the money lost by both Call and Put option sellers.
Step 5: Identify the Strike at which the money lost by Option Sellers is least.
It is the Strike price point at which most pain is witnessed by the Option Buyers and it is the price at which the Nifty contract will expire.
In addition to Calculating Nifty MaxPain (of Nifty), you need to analyze the Open Interest of Nifty to understand how Nifty will move on expiry day and where Nifty will close for the day. We are providing Live Nifty Max Pain Data for all our users completely free of charge.
How To Read Option Chain Open Interest Data of NIFTY Like a PRO?
Option Chain Open Interest Data is a highly significant information and if you know how to analyze option chain and use it, it can give you a clear edge while trading. Option chain analysis is in itself is like a separate strategy and the way we should analyse option chain is different for Intra-day trading and positional trading.
So, What is the Significance of Option Chain Analysis and Open Interest Data (OI Data) Reading?
By doing Option Chain Analysis properly,
- You can find Resistance of a Nifty using OI data
- You can find Support of a Nifty using OI data
- You can find how a Nifty will move using OI Data
- You can find whether support or resistance of Nifty is getting stronger or weaker using OI Data
For more details, check out this video:
Put Call Ratio:
The Put Call Ratio is a fairly simple ratio to calculate. The ratio helps us identify extreme bullishness or bearishness in the market. PCR is usually considered a contrarian indicator. Meaning, if the PCR indicates extreme bearishness, then we expect the market to reverse, hence the trader turns bullish. Likewise if PCR indicates extreme bullishness, then traders expect markets to reverse and decline.
To calculate PCR, all one needs to do is divide the total open interest of Puts by the total open interest of the Calls. The resulting value usually varies in and around one. Please find below the LIVE PCR Data for Nifty.
We, at MarketSecrets Provide the Live MaxPain and Live PCR Data of Nifty. This data is for current expiry week.
Live Nifty Max Pain Chart & Live PCR, Support & Resistance Data for this Expiry
How and Why Max Pain changes on Expiry Day?
In addition to checking MaxPain of Nifty, you need to understand “How and Why” Max Pain changes on Expiry Day. You need to understand this properly to find out how it can impact your trades on Expiry Day.
MaxPain can change at anytime during the day due to various factors. You need to understand these factors to predict where MaxPain will be at the end of the expiry week.
For More details, check out this video:
Live MaxPain Calculator:
Now that you understand the importance of MaxPain and Option Chain analysis while trading Nifty, you would need a way to find MaxPain. There are various ways to get MaxPain data, including this webpage. In addition, you can consider the 2 other options mentioned below.
Live Option Analytics Data Feed
In addition to the Live MaxPain and Live PCR Data, MarketSecrets provides multiple data feeds for dedicated option traders through our OptionAnalytics portal. Below is the data feed from OptionAnalytics, which shows how Nifty MaxPain moves in relation to spot price of Nifty, plotted against time (Weekly Feed). This will help you to confirm your trading signals and improve your trading efficiency. Also, it will help us get very good reversal trades. For More details, visit www.OptionAnalytics.in
As part of OptionAnalytics, we provide data for NSE Indices (i.e) Nifty MaxPain, Nifty PCR, BankNifty MaxPain, BankNifty PCR, support, resistance, premium spike/decay, etc.
