Can someone help me understand this max pain.
I understand the max pain as a concept. But I somehow not able to read this chart
A simple explanation is that the max pain strike is the one where option buyers could loose the most or in other way max option Put & Call writers are residing at the strike price
Hello Sir. That’s general info I know. However Dhan’s app don’t show which strike. They have a different way of interpretation so they don’t show up strike price.
I couldnt find any info on YouTube to understand this chart representation. So we need to wait until @PravinJ @Dhan respond back with resource
Now i understand what you mean. I think they forgot to add the strike price of the max pain @PravinJ @Dhan . However, once you click at the bars you can see the stike price of that bar. For now you can click on the smallest bar to identify the strike price (max pain)
Oops. I thought they are unique. Click on small bars is such a pain. @PravinJ @Dhan_Cares hope this shall be fixed
Hi
To calculate max pain, we sum the call and put money value at each strike price and the strike with minimum value is your Max Pain.
This graph shows the money value at each strike.
Hope this clarifies.
Hi Naman,
I the screenshot attached how do I know which strike is having a max pain?
Hi @Shylaja
The strike with the minimum money value (smallest column) is the Max Pain. We are also enhancing the Max Pain section in the next revamp.