Bajaj Auto 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 BAJAJ-AUTO, that strike is ₹10,500. Spot at ₹10,485 is near max pain — the expiry magnetic pull is active.
Max Pain Level
The current max‑pain strike for Bajaj Auto Limited (BAJAJ‑AUTO) is ₹10,500. This is the price at which option writers collectively would incur the smallest aggregate loss, so the market often gravitates toward this level as expiry approaches.
Spot vs Max Pain Gap
The spot price sits at ₹10,485, just ₹15 below the max‑pain point, representing a 0.14 % gap. The modest shortfall suggests limited upward pressure is needed for the underlying to reach the pain‑zone, implying a potential pull toward the strike as the expiration date draws nearer.
Shift Signal
The max‑pain level has risen by ₹100 relative to yesterday, indicating that option writers have moved their short positions higher. This upward shift reflects a market expectation of a slightly higher settlement price, and the new positioning may reinforce the magnet effect toward the updated strike.
Expiry Context
Max pain is derived from the cumulative open interest of puts and calls; the strike that minimizes total writer loss becomes the “pain” point. During the final week before expiry, market participants often observe a convergence of spot prices toward this level, though the phenomenon is statistical rather than deterministic. Historical patterns show that while many stocks drift toward max pain, external catalysts can easily override the tendency.
Data Note
The spot price is ₹15 below the max‑pain strike, with 26 days remaining until the November 23 expiry.
Data as of 2026-10-28