NTPC 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 NTPC, that strike is ₹310. Spot at ₹303.75 is 2.0% below max pain — possible upward gravitational pull into expiry.
Max Pain Level
The “max pain” strike for NTPC Limited sits at ₹310, the level at which option writers would incur the smallest aggregate loss if all contracts expired worthless. This price acts as a magnet that often draws the underlying toward it as expiry approaches.
Spot vs Max Pain Gap
The current spot price of ₹303.75 sits about 2.02 % below the max‑pain level, indicating a modest gap to the magnet. Such a pull‑back suggests that the market may still have room to drift upward toward the ₹310 strike before the contracts settle.
Shift Signal
Today’s max‑pain figure moved down by ₹7.50 from yesterday, a downward shift that points to recent writer positioning at lower strikes. This adjustment hints that writers have been resetting their exposure, possibly in response to the underlying’s recent price action.
Expiry Context
As the November 23 expiry draws nearer, the max‑pain mechanism typically gains prominence, with open‑interest concentrating around the strike that minimizes writer loss. Nevertheless, this is a statistical tendency—not a guarantee—that the underlying will settle precisely at the identified level, especially given market volatility and external catalysts.
Data Note
The spot is roughly ₹6.25 away from the max‑pain strike with 26 days remaining until expiry.
Data as of 2026-10-28