Option Max Pain Calculator
Option Max Pain: a planned Super Calculator tool. Covers open interest by strike for calls and puts. Stub page while the tool and its worked example are.
Option Max Pain Calculator is a planned calculator in the finance section of Super Calculator, covering options and derivatives.
What this calculator will compute
Inputs: open interest by strike for calls and puts, expiry and current price (currency).
Outputs: max pain strike (currency), total value curve and distance from spot (%).
Formula, recorded as scope and not yet verified against a primary source: For each candidate expiry price, sums the intrinsic value of all open calls and puts, and identifies the price minimizing total option holder value. The theory that price gravitates there is contested and has weak empirical support, which must be stated.
Status
This page is a stub. The calculator is not built, no figure on this page has been verified against the authority that sets it, and nothing here should be used to make a decision. The page exists so that the site structure is complete and so that articles can link this concept on first mention.
The stub carries noindex, nofollow and is excluded from the sitemap.