Punjab National Bank 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 PNB, that strike is ₹120. Spot at ₹120.31 is near max pain — the expiry magnetic pull is active.
Max Pain Level
The options market for Punjab National Bank (PNB) pinpoints the strike at ₹120 as the “max‑pain” level. This is the price at which option writers—those who sold calls and puts—collect the greatest aggregate loss, so the market tends to gravitate toward it as expiration approaches.
Spot vs Max Pain Gap
The current spot price of ₹120.31 sits just 0.26 % above the max‑pain strike, indicating a modest upside bias. The narrow gap suggests that any pull‑back toward ₹120 could be swift, as the market seeks to close the distance between spot and the loss‑maximising zone.
Shift Signal
The max‑pain level has moved down by 2 points from yesterday, signalling that writers are now more exposed at slightly lower strikes. This downward shift typically reflects a net increase in put‑selling pressure, hinting that market makers anticipate a softer price trajectory and are positioning to benefit from a modest decline.
Expiry Context
Max‑pain theory posits that, as options near expiry, price action is pulled toward the strike where the combined open interest of calls and puts creates the highest writer loss. During the final week before expiry, liquidity concentrates around this strike, often producing a magnet‑like effect. However, the principle is a statistical tendency rather than a deterministic rule; external news or macro‑fundamental shifts can easily override the pull.
Data Note
With the spot only ₹0.31 above the max‑pain level and 26 days remaining until the 23‑Nov‑2026 expiry, the price is tightly aligned with the writer‑loss sweet spot.
Data as of 2026-10-28