Dabur India 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 DABUR, that strike is ₹370. Spot at ₹360 is 2.7% below max pain — possible upward gravitational pull into expiry.
Max Pain Level
The strike that would cause the greatest loss to option writers is ₹370. At this level, the combined put and call open interest would expire worthless, pulling the underlying toward this magnet as expiry approaches.
Spot vs Max Pain Gap
The spot price sits at ₹360, approximately 2.7 % below the ₹370 level. This gap suggests a modest upward pull may be needed for the price to converge with the pain point before the contract expires.
Shift Signal
The pain level has moved down ₹10 from yesterday, indicating that writers have re‑balanced their positions toward lower strikes. Such a downward shift often reflects an expectation of limited upside or a defensive tilt in the options market.
Expiry Context
As the contract approaches its 26‑day horizon, the convergence mechanism intensifies; open interest at the pain strike exerts pressure on the underlying to settle near that point. Nonetheless, this is a statistical tendency rather than a deterministic outcome, and market forces can deviate from the expected path.
Data Note
The underlying is currently ₹10 away from the pain point with just under a month remaining until expiry.
Data as of 2026-10-28