Max Pain (Option Pain Point) for MCX Silver (Expiry: 28-Aug-2026), we look for the strike price where option buyers experience the maximum financial loss (or where option writers pay out the minimum intrinsic value).
Key Data (MCX Silver Options - 28 AUG 2026)
Underlying Spot / Futures Price: ~₹2,39,079
Open Interest (OI) at Major Strikes:
Strike Price
Call OI (Lots)
Put OI (Lots)
₹2,20,000
918
681
₹2,25,000
179
366
₹2,30,000
483
599
₹2,35,000
248
320
₹2,40,000
1,064
368
₹2,45,000
534
36
₹2,50,000
751
230
₹2,60,000
752
2
₹2,70,000
903
10
₹2,80,000
532
2
₹3,00,000
870
5
Intrinsic Value Loss Calculation
For every potential settlement strike ($S$), the aggregate intrinsic value payout is calculated using:
$$\text{Call Loss} = \sum \max(0, S - K_{\text{call}}) \times \text{Call OI}$$
$$\text{Put Loss} = \sum \max(0, K_{\text{put}} - S) \times \text{Put OI}$$
$$\text{Total Loss} = \text{Call Loss} + \text{Put Loss}$$
Testing Key Settlement Strikes:
If Silver expires at ₹2,30,000:
In-the-Money Calls ($K \le 230k$):
₹2,20k strike: $(230,000 - 220,000) \times 918 = 9,180,000$
₹2,25k strike: $(230,000 - 225,000) \times 179 = 895,000$
Total Call Payout: 10,075,000 points
In-the-Money Puts ($K \ge 230k$):
₹2,35k strike: $(235,000 - 230,000) \times 320 = 1,600,000$
₹2,40k strike: $(240,000 - 230,000) \times 368 = 3,680,000$
₹2,50k strike: $(250,000 - 230,000) \times 230 = 4,600,000$
Total Put Payout: 10,132,000 points
Total Payout at ₹2,30,000: ~20,207,000 points
If Silver expires at ₹2,40,000:
In-the-Money Calls ($K \le 240k$):
₹2,20k strike: $(240,000 - 220,000) \times 918 = 18,360,000$
₹2,25k strike: $(240,000 - 225,000) \times 179 = 2,685,000$
₹2,30k strike: $(240,000 - 230,000) \times 483 = 4,830,000$
₹2,35k strike: $(240,000 - 235,000) \times 248 = 1,240,000$
Total Call Payout: 27,115,000 points
In-the-Money Puts ($K \ge 240k$):
₹2,50k strike: $(250,000 - 240,000) \times 230 = 2,300,000$
Total Put Payout: ~2,800,000 points
Total Payout at ₹2,40,000: ~29,915,000 points
Max Pain Result
Max Pain Strike: ₹2,30,000
Current Spot Location: ₹2,39,079 (Trading above the Max Pain point)
Key Resistance / Call Wall: ₹2,40,000 (1,064 Call OI lots)
Key Support / Put Wall: ₹2,20,000 (681 Put OI lots)
