Backtesting Arena

Backtesting Arena

Max Pain

Options

The option strike at which the largest total value of open contracts expires worthless — the price level that inflicts maximum loss on option holders, often acting as a magnet into expiry.

Calculation
For each expiry, the strike minimising the aggregate intrinsic payout to all open call + put holders (Deribit BTC options chain). Recomputed daily from open interest per strike.
Unit & source
usd_strike · tradingstrategies.work BTC Options Max-Pain (Deribit) methodology

Related terms

Knowledge objects measuring this

Definitions are for research and education. Metrics describe market conditions — not financial advice or a buy/sell signal.