Godfrey Phillips 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 GODFRYPHLP, that strike is ₹1,700. Spot at ₹1,714.4 is near max pain — the expiry magnetic pull is active.
Max Pain Level
The current max‑pain strike for GODFRYPHLP is ₹1,700. Max pain is the strike at which option writers would incur the smallest aggregate loss, acting as a magnet that can pull the underlying toward it as expiry approaches.
Spot vs Max Pain Gap
The spot price of ₹1,714.4 sits 0.85 % above the max‑pain level, leaving a modest upside gap. This slight premium suggests that the underlying may face modest downward pressure as market participants attempt to close the gap before the contract expires.
Shift Signal
The max‑pain strike has shifted down by ₹140 from the previous day, indicating a recent move toward lower strikes. Such a downward shift often reflects option writers increasing their short exposure at lower strikes, potentially reinforcing the pull‑back toward the new pain point.
Expiry Context
Max pain reflects the aggregate payoff profile of all open options; as the 2026‑11‑23 expiry draws near, the underlying price frequently gravitates toward this strike, though the effect is probabilistic rather than deterministic. In the final week before expiry, price movements tend to be more compressed, and the magnet effect of max pain can become more pronounced, especially if open interest is heavily concentrated around the pain strike.
Data Note
The spot is ₹14.4 above the max‑pain level with 26 days remaining until expiry.
Data as of 2026-10-28