Polycab 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 POLYCAB, that strike is ₹7,800. Spot at ₹7,988 is 2.41% above max pain — possible downward gravitational pull into expiry.
Max Pain Level
The strike with the least option pain for writers is ₹7800, indicating where expiring contracts collectively minimize financial loss. This level often acts as a magnet for spot prices nearing expiry, influencing short-term price dynamics.
Spot vs Max Pain Gap
Currently, spot trades above the max pain level by +2.41%, suggesting a potential downward pull towards ₹7800. The gap indicates residual pressure from open writer positions concentrated below the current price.
Shift Signal
The max pain has not shifted from the previous day, signaling stable writer positioning and limited rebalancing in open interest. Minimal movement implies no urgent defensive adjustments by option sellers.
Expiry Bias
With spot above the max pain and limited time left, a gradual drift downward is expected to relieve pressure on call writers. However, the pull strengthens only if the spot moves within 5% of max pain—likely if expiry were within five days.
Trader Note
With 7 days to expiry, premium decay strategies are premature; wait for tighter proximity to the expiry window before considering short premium setups.
Data as of 2026-04-21