Loading
Market Intelligence › Basic Terminologies
The strike where the total loss of option buyers on expiry will be highest.
Published by The Retail Trader · JUL 31, 2026 · Derivatives (F&O)
Max Pain — The strike where option buyers' total loss at expiry will be the highest. This is an observation, not a prediction.
This term comes under Derivatives (F&O), in the section "Reading OPTION CHAIN". The option chain is not just a table of premiums — it tells the whole story of positioning:
Other terms in this group — understanding them together is more useful:
• Change in OI
• Highest OI Strike
• OI Concentration
• PCR (Put-Call Ratio)
• Expected Move
• IV Skew / Smile
• Far Strike Liquidity
• Theoretical vs Market Price
• Open Interest Buildup Table
To read the entire group and all its examples in one place, see the journal "DERIVATIVES: DICTIONARY OF FUTURES & OPTIONS" - this term has been taken from there.
This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.