What is Max Pain?
In Options Trading, the Max Pain theory, sometimes also called Strike Price Pegging focuses on the idea that towards expiration date the price of a stock will move towards its strike price thus inflicting most losses (pain) to the majority of option traders as all parties with high investments try to steer the stock price towards their calls or puts to minimize their losses. Max Pain calculations on our site use g intraday data and are up to date to within 30 minutes.
What is Actual Pain? (Relative Pain)
Actual Pain, also sometimes referred to as Relative Pain is a variation of the Max Pain theory only taking into account the options traded since a particular date (most often the last expiration date). Due to the nature of our Actual Pain calculation no intraday data is used; instead the previous trading day is the newest data on which the calculation is based upon; also the Actual Pain calculation will be inaccurate within the first days of a new expiration month.
How to use OptionCalc?
Simply enter the desired stock symbol and select an expiration month (e.g. 2014-09) and press the "Search" button. Detailed information will be displayed in the grid (Max pain higlighted blue, Actual Pain purple and ITM options yellow) and in the diagram if you hover over each bar. In addition the current max pain is highlighted green in the grid and displayed as header information over the Diagram.
Please keep in mind that for certain stocks weekly options are not available; in this case uncheck the "Weeklies only" checkbox and try again!
The layout is completely flexible, feel free to change the size of each panel or hide them via the '<<' buttons to further expand the diagram.
It is also possible to directly load items with passing the symbol and expiration month in the url:
By using this application you agree that BluSoft Inc. can in no way be held responsible for any calculation inaccuracies or financial losses that might occur when using OptionCalc. Furthermore the data utilized is provided by public sources and BluSoft Inc. will and cannot be held responsible for its accuracy.
Data Sources: Yahoo! Finance, Google Finance and other public sources