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 ₹890. Spot at ₹879.1 is 1.2% below max pain — possible upward gravitational pull into expiry.
Max Pain Level
The current max‑pain strike for AU Small Finance Bank Limited (AUBANK) sits at ₹890. This is the strike where option writers would incur the smallest aggregate loss, often acting as a magnet as expiry approaches.
Spot vs Max Pain Gap
The spot price of ₹879.1 lies about 1.22 % below the max‑pain level, indicating a modest downward gap. The modest distance suggests limited immediate pressure for the price to climb sharply toward the pain point.
Shift Signal
The max‑pain level has shifted down by ₹100 from yesterday, a bearish move that reflects option writers repositioning toward lower strikes. Such a shift typically signals that writers anticipate either a sustained pull‑back in the underlying or a consolidation near the new pain zone.
Expiry Context
Max‑pain is derived from the open‑interest of all strikes and represents the strike where the combined premium loss for writers is minimized. In the final week before expiry, market participants often gravitate toward this level, though it remains a tendency rather than a certainty, and price can diverge due to news or macro factors.
Data Note
The spot is currently ₹10.9 below the max‑pain strike, with 26 days remaining until the November 23 expiry.
Data as of 2026-10-28