Supreme Industries 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 SUPREMEIND, that strike is ₹3,400. Spot at ₹3,229 is 5.0% below max pain — possible upward gravitational pull into expiry.
Max Pain Level
The strike identified is ₹3,400. This is the price at which option writers would, in aggregate, experience the smallest possible loss if positions were closed at expiry, acting as a magnetic point as the contract approaches maturity.
Spot vs Max Pain Gap
The market is trading at ₹3,229, leaving a gap of roughly ₹171 below the identified level. A widening gap suggests that the underlying may be pulled toward the strike, because the majority of open interest is concentrated there.
Shift Signal
The level has moved down ₹100 from the previous day, indicating that writers have adjusted their hedges toward a lower strike. This downward shift implies that they are positioning for a potential pull‑back in the underlying price toward the new reference point.
Expiry Context
The concept works by aggregating open interest across all strikes; the strike with the least combined call and put exposure becomes the point of least loss for writers. Historically, during the final week before expiry, the underlying often gravitates toward this point, though the movement is a tendency rather than a certainty.
Data Note
The spot price sits about 5 % below the identified level with 26 days remaining until the November 23 expiry.
Data as of 2026-10-28