One 97 Communications 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 PAYTM, that strike is ₹1,620. Spot at ₹1,631.5 is near max pain — the expiry magnetic pull is active.
Max Pain Level
The option strike that concentrates the greatest amount of open‑interest for One 97 Communications Limited (PAYTM) is ₹1,620. At this level, option writers would experience the smallest aggregate loss as the contract nears expiration, creating a magnet that often pulls price toward it.
Spot vs Max Pain Gap
The underlying is trading at ₹1,631.5, placing it about 0.71 % above the ₹1,620 reference. This modest premium suggests a mild upward bias, yet the distance is small enough for the magnet effect to potentially drag price down toward the strike as expiry approaches.
Shift Signal
The max‑pain figure moved 80 points lower relative to yesterday’s level, indicating that sellers have been repositioning toward cheaper strikes. Such a downward shift typically reflects writers’ desire to hedge at more favorable prices, which can increase downward pressure on the underlying during the final weeks.
Expiry Context
The max‑pain concept is rooted in the aggregate payoff of all outstanding options: as expiration nears, the price tends to gravitate toward the strike that minimizes total writer loss. Historically, the week preceding expiry often sees heightened gamma‑squeezes and tighter trading ranges, but the magnet is a tendency, not a certainty, and market forces can override it.
Data Note
The current spot is ₹11.5 above the reference level, with 26 days remaining until the November 23 expiration.
Data as of 2026-10-28