Max pain is the strike where most open options expire worthless. Compute it by summing OI times distance to each strike, minimized at the max-pain strike. Near expiry Nifty often pins within 0.3 percent. The filter reduces size when distance is tiny.
The worry: traders fight the magnet and lose. Max pain is probabilistic, not a target. Use it to size, not to bet direction. The free starter kit includes the computation; respect the pin, don't fight it.
Q: What is max pain?
A: Strike where most open contracts expire worthless.
Q: Does Nifty pin?
A: Often within 0.3% near weekly expiry, probabilistically.
Q: Free to compute?
A: Yes — included in the starter kit pipeline.
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By Shakti Tiwari · Options AI research pillar. NISM XII certified. Educational only, not investment advice; verify before acting.