Union Bank of India 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 UNIONBANK, that strike is ₹185. Spot at ₹187.22 is 1.2% above max pain — possible downward gravitational pull into expiry.
Max Pain Level
The current max‑pain strike for UNIONBANK is ₹185. This level reflects the price at which option writers would incur the smallest total loss across all outstanding calls and puts, acting as a magnet as expiration approaches.
Spot vs Max Pain Gap
The market is trading at ₹187.22, about 1.2 % above the max‑pain point, creating a modest upside gap. Such a gap suggests limited upward pressure may be needed for the price to drift back toward the magnet.
Shift Signal
The max‑pain figure has not moved since yesterday, indicating a stable positioning of option writers. A flat shift implies that the open‑interest distribution remains unchanged, and writers are likely maintaining their current hedge.
Expiry Context
Max pain emerges from the aggregate open interest of calls and puts, pulling the underlying toward the strike that minimizes writers’ payouts. In the final week before expiry, prices often gravitate toward this level, but the effect is probabilistic, not deterministic.
Data Note
The spot price sits roughly ₹2.22 above the max‑pain strike with 25 days remaining until the September 29 expiry.
Data as of 2026-09-04