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 ₹8,500. Spot at ₹8,300 is 2.4% below max pain — possible upward gravitational pull into expiry.
Max Pain Level
The current max‑pain strike for POLYCAB is ₹8,500. This level represents the price where the total loss of option writers (both call and put writers) is minimized, acting as a magnet that often draws the underlying price toward it as expiry approaches.
Spot vs Max Pain Gap
The spot price of ₹8,300 sits about 2.35 % below the max‑pain level, indicating a downward gap. As expiry nears, this gap may narrow if upward pressure builds, or it could widen if bearish sentiment persists.
Shift Signal
The max‑pain figure has moved down by ₹500 from yesterday’s level, signalling a shift in the aggregate positioning of option writers toward a lower strike. Such a shift suggests that writers have recently adjusted their hedges, potentially increasing the pull of the lower strike as expiry draws near.
Expiry Context
Max pain is derived from the net open interest of all outstanding calls and puts; the strike where the combined writer loss is smallest tends to attract the underlying price during the final week of trading. Historically, the underlying often drifts toward the max‑pain strike in the days leading up to expiry, though this tendency does not guarantee the outcome.
Data Note
With 25 days remaining until the September 29 expiry, the spot sits ₹200 below the max‑pain strike of ₹8,500.
Data as of 2026-09-04