Steel Authority of 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 SAIL, that strike is ₹175. Spot at ₹162 is 7.4% below max pain — possible upward gravitational pull into expiry.
Max Pain Level
The strike with the greatest combined open‑interest loss for option writers is ₹175. At this level, the majority of call and put writers would experience the smallest aggregate loss, acting as a magnetic point as expiry approaches.
Spot vs Max Pain Gap
The current spot price of ₹162 sits about 7.4 % below the ₹175 pain point, indicating a sizable distance to the magnet. Unless the market pulls sharply higher, the gap suggests limited upward pressure on the underlying.
Shift Signal
The pain level has risen 2.5 points from yesterday, reflecting a modest upward shift in writer positioning. This move signals that more open interest is now concentrated at higher strikes, subtly nudging the magnet toward the ₹175 zone.
Expiry Context
Max pain theory assumes that option writers will hedge or close positions to minimize their losses, creating a convergence of price toward the strike with the greatest open interest as the contract nears expiration. In the final week before the 23‑Nov expiry, it is common to see increased pinning activity, though the outcome remains probabilistic and not guaranteed.
Data Note
With 26 days left, the underlying trades about ₹13 away from the ₹175 pain point.
Data as of 2026-10-28