Options Max Pain Calculator
Max pain is the expiration price at which the total intrinsic payout to all option holders is smallest, computed by summing the in-the-money value of every call and put across all strikes, weighted by open interest. The theory holds that price tends to drift toward this strike into expiration. Enter the strike prices and the call and put open interest at each (up to five strikes) and this calculator evaluates the aggregate payout at every listed strike and reports the max pain strike along with its total payout.
Max pain formula
For each candidate price P (each listed strike):
Call payout = sum over strikes of max(P - strike, 0) * call OI * multiplier
Put payout = sum over strikes of max(strike - P, 0) * put OI * multiplier
Total payout(P) = call payout + put payout
Max pain strike = the P with the smallest total payout
The calculation evaluates total payout at each listed strike and selects the minimum. The multiplier scales all totals equally and does not change which strike wins.
Using the result
- Max pain is a tendency near expiration, not a guaranteed target.
- Accuracy depends on having open interest for all material strikes; this tool supports up to five.
- Open interest changes daily, so recompute close to expiration.
- Heavy put open interest pulls max pain higher; heavy call open interest pulls it lower.
- Combine with implied volatility and the expected move for a fuller expiration picture.
Max pain: frequently asked questions
What is the max pain price?
Max pain, or the point of maximum pain, is the underlying price at which the total dollar value paid out to option holders at expiration is smallest. It is the strike where the combined intrinsic value of all open call and put contracts is minimized, summed across every listed strike using open interest as the weight.
How is max pain calculated?
For each candidate expiration price, sum the intrinsic payout of every call (max of price minus strike, times call open interest) and every put (max of strike minus price, times put open interest) across all strikes. The candidate price that produces the smallest total payout is the max pain strike.
Why does max pain matter to traders?
The max pain theory suggests that, near expiration, the underlying tends to gravitate toward the max pain strike because that price minimizes the aggregate payout to option buyers, who are net long. It is a heuristic, not a guarantee, and is one of several factors traders watch into expiration.
What inputs does this calculator need?
Enter the strike prices and the call open interest and put open interest at each strike. This tool accepts up to five strikes. The contract multiplier scales the dollar payout but does not change which strike is the minimum, so max pain location is the same with or without it.
Is max pain a reliable price predictor?
No. Max pain is a statistical tendency observed in some markets, not a rule. It ignores news, fundamentals, and changing open interest. Treat it as one input among many. The calculation here is exact for the open interest you enter, but the predictive value is a theory, not a certainty.
Official sources
- U.S. SEC Investor.gov: Options glossary (open interest, intrinsic value).
- The Options Clearing Corporation (OCC): Open interest and contract specifications.
Reviewed by the CalculatorHub team, edited by James Graham, 17 June 2026. See our methodology.