Oil 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 OIL, that strike is ₹480. Spot at ₹488.3 is 1.73% above max pain — possible downward gravitational pull into expiry.
Max Pain Level
The current max‑pain strike for Oil India Limited (OIL) is ₹480. This level represents the price at which option writers would incur the smallest aggregate loss across all outstanding calls and puts, creating a magnet‑like pressure as expiry approaches.
Spot vs Max Pain Gap
The spot price of ₹488.3 sits about 1.73 % above the max‑pain level, indicating a modest upside gap. Because the market is trading higher than the pain point, any pull‑back toward ₹480 would reduce the intrinsic value of out‑of‑the‑money calls while benefiting put writers.
Shift Signal
The max‑pain figure shows no shift from the previous day, suggesting that option writers have not altered their positioning materially. A stable pain level typically reflects a balanced distribution of open interest that does not favour a decisive directional bias.
Expiry Context
Max pain is calculated from the total open interest in both call and put options, assuming all contracts expire worthless; the strike that minimizes the combined writer loss becomes the pain point. In the week leading up to expiry, price action often gravitates toward this strike, but the phenomenon remains a statistical tendency rather than a deterministic rule.
Data Note
At 25 days out, the spot price remains ₹8.3 above the max‑pain strike of ₹480, leaving a modest distance for the market to cover before the expiry date of 2026‑09‑29.
Data as of 2026-09-04