KEI Industries 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 KEI, that strike is ₹4,500. Spot at ₹4,837.8 is 7.51% above max pain — possible downward gravitational pull into expiry.
Max Pain Level
The max pain strike for KEI is ₹4500, representing the level where option writer losses are minimized at expiry. As expiry approaches, the spot price often gravitates toward this strike due to dealer hedging flows and gamma effects.
Spot vs Max Pain Gap
KEI’s spot at ₹4837.8 trades 7.51% above the max pain level, creating a significant upward gap. This imbalance suggests a potential pull toward ₹4500, especially if open interest concentrates around this strike.
Shift Signal
The max pain level remains unchanged from yesterday, indicating stable writer positioning. Persistent alignment at ₹4500 signals entrenched short options positions near this strike.
Expiry Bias
With 7 days to expiry, a downward drift toward ₹4500 is expected as premium decay accelerates and dealers adjust deltas. The pull strengthens as time to expiry drops below 5 days, when gamma effects become more acute.
Trader Note
Use premium decay strategies—like short puts or credit spreads—only when daysToExpiry ≤ 5 and spot shows signs of stalling near resistance.
Data as of 2026-04-21