AU Small Finance Bank Limited Max Pain Analysis
What is Max Pain?
Max Pain theory states the underlying gravitates toward the strike where option writers face minimum collective loss at expiry. For AUBANK, that strike is ₹1,020. Spot at ₹980 is 3.9% below max pain — possible upward gravitational pull into expiry.
Max Pain Level
The current highest open‑interest strike for AUBANK options is ₹1020. This “max pain” level is where option writers collectively incur the least loss, often acting as a magnet as expiry approaches.
Spot vs Max Pain Gap
The market price sits at ₹980, about 3.92 % below the max‑pain strike, indicating a negative gap. Such a disparity typically creates upward pressure, as market participants may anticipate a pull toward the pain point.
Shift Signal
Open‑interest has shifted ‑10 points from yesterday, a modest downward move. A negative shift suggests that writers are trimming short‑dated positions, potentially leaving the market more exposed to a price move toward the max‑pain strike.
Expiry Context
In the final week before expiry, the concentration of open interest at a single strike can intensify price convergence toward that level, though this remains a statistical tendency, not a certainty. Historical patterns show that the underlying often drifts nearer to max pain, but external news or macro factors can easily override the effect.
Data Note
With a ₹40 distance between spot and max‑pain and only 6 days remaining until the 2026‑07‑28 expiry, the proximity may become a focal point for option‑related trading dynamics.
Data as of 2026-07-22