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OPTIONS MAX PAIN

5 min · DYOR Education
FreeCOIN · Options
Goal

Take apart OPTIONS MAX PAIN — the strike at which buyers of the nearest monthly expiry’s options would receive the least.

OPTIONS MAX PAIN on BTC/USDT, 1h: a line on the price chart — the max pain strike of the nearest monthly expiry, stepping when recalculated
OPTIONS MAX PAIN on BTC/USDT, 1h: a line on the price chart — the max pain strike of the nearest monthly expiry, stepping when recalculated
What it shows

At what price option buyers would receive the least.

Starting simple. Two options with the same 85,000 strike are open: a call and a put. Let us see what their buyers receive on expiry day.

Price on expiry dayThe call paysThe put paysBuyers receive in total
75,000010,00010,000
80,00005,0005,000
85,000000
90,0005,00005,000
95,00010,000010,000

85,000 is the max pain for this pair: there the buyers receive the least. The “pain” is the buyers’: everything of theirs expires worthless. For the sellers this price is the best of all.

  • In real life there are thousands of options at different strikes. The indicator does the same calculation over all open options of the nearest monthly expiry and takes the price with the smallest total.
  • It is the only options indicator drawn right on the price chart: a line at the level of this strike. When recalculated it steps to a new strike, so it moves in steps.
  • It is a calculation, not a rule: the price does not have to come to this line.

BTC on 1 October 2026 at a price of 84,500: Binance — 79,000, Deribit — 76,000.

max pain price now payouts to buyers ↑ price at expiry →
The further the expiry price is from max pain, the more option buyers receive in total.
What it's for

See the strike at which buyers of the nearest monthly expiry’s options would receive the least.

For example.

  • The line is at 79,000 with the price at 84,500 on Binance. On Deribit — 76,000.
  • The distance from the price to the line is $5,500: that is how far the price would have to go to the point where all open rights are worth the least.
  • It is a calculation over open contracts, not a rule: the price does not have to come to it.
Where to find it
Indicators›COIN›Derivatives›OPTIONS MAX PAIN

The indicator goes onto the price pane, not under the chart.

Settings
FieldOptionsDefaultWhat it changes
ExchangeChartChartCannot be switched for options indicators: there are no other values in the list.
The options exchange is chosen by the “Options exchange” field below.
Options exchangeBinance
Deribit		BinanceWhose options to count.
The chart’s exchange does not affect this: the indicator takes only the coin from the chart.
- Want Binance options — Binance.
- Want the main options exchange, with 19 times more BTC open interest — Deribit.
In alerts

Metric OPTIONS. Condition fields:

Options exchangeExchangeMarket TypeCoinTimeframeOptions metric

“Options exchange” — Binance or Deribit. “Options metric” for this indicator: Max Pain. The “Exchange” and “Market type” fields are in the form, but the options asset is taken from the coin.

Try it yourself
  1. Enable OPTIONS MAX PAIN on 1h — the line appears on the price chart.
  2. Compare the line’s strike with the current price, then switch “Options exchange” to Deribit.
What you should get. The line sits at one strike and moves when the exchange is switched: Binance and Deribit each have their own set of open options.
Takeaway

The only options indicator on the price chart: a line at the level of this strike, stepping when recalculated. It is a calculation over open contracts, not a rule: the price does not have to come to it.

Quick check

What does the OPTIONS MAX PAIN line show?

Show answer

Correct answer: The strike at which buyers of the nearest monthly expiry’s options would receive the least

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