Max Pain Theory for Nifty

Max Pain is the strike at which the largest number of open option contracts would expire worthless, minimizing writer payout. Theory: writers (who are usually right near expiry) steer price toward max pain. In practice Nifty hovers within 0.5% of max pain in the final 2 days of weekly expiry more often than chance. As a feature: max_pain_distance = |spot - max_pain| / spot. Filter: when distance < 0.3% and DTE < 2, reduce size (pinning trap) -- do not fight the magnet. Max Pain is a probability, not a certainty; use it to size, not to bet direction blindly.