Max pain is the price at which the largest dollar amount of options would expire worthless — the point of maximum loss for option buyers as a group. It's computed from the open interest across all strikes for an expiration.
The idea is that price sometimes gravitates toward max pain as expiration approaches, since that's where the most contracts lapse. Treat it as a rough magnet level and a talking point, not a hard rule.
Related terms
- Open interest (OI) — The number of option contracts currently open. Shows positions that exist — not their direction.
- Gamma wall — A strike with a large pile of dealer gamma. Call walls often act as resistance, put walls as support.
- DTE (days to expiration) — Days to expiration. Drives how fast an option decays and how sensitive it is to price.
See it in the flow
Open the dashboard to watch real options flow free, or read the beginner guides. Watch-only — not financial advice.