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 ₹180. Spot at ₹182.98 is 1.66% above max pain — possible downward gravitational pull into expiry.
Max Pain Level
The calculated max‑pain strike for UNIONBANK is ₹180. This is the price at which the aggregate loss of option writers would be minimized, acting as a magnet that often draws the underlying closer as expiry approaches.
Spot vs Max Pain Gap
The current spot price of ₹182.98 sits about 1.66 % above the max‑pain level, indicating a modest upside gap. Such a gap suggests that the market may experience a pull‑back toward the ₹180 strike as the expiry date draws nearer.
Shift Signal
The max‑pain figure has moved +5 points relative to yesterday, a bullish shift that hints option writers are increasingly positioned for higher strikes. This upward adjustment can pressure the underlying to stay above the previous level, at least temporarily, before the convergence force gains momentum.
Expiry Context
Max‑pain reflects the point where the total open interest of calls and puts creates the smallest net liability for writers; as the expiration week unfolds, traders often see price action gravitate toward this strike. However, it remains a statistical tendency—not a deterministic outcome—subject to market news, liquidity flows, and the balance of hedging activity.
Data Note
The spot price sits roughly ₹2.98 above the max‑pain level with 26 days remaining until the November 23 expiry.
Data as of 2026-10-28