Sensibull Max Pain


Sensibull Max Pain

What is Max pain data in Sensibull?

Here is the demo Video of Sensibull Option Chain plus a tutorial on how to use Options Chain, OI, Max Pain, PCR, and IV Percentile. The Sensibull Option Chain shows the following in an easy to read format

Open Interest Build up across strikes in call and put options on Nifty Option Chain, Bank Nifty Option Chain, and Single Stock Option Chain Put Call Ratio, Implied Volatility, Implied Volatility Percentile, and Max Pain of Nifty, Bank Nifty and Single Stock Options Option Greeks — Delta, Vega, Theta of Nifty Bank Nifty and Single Stock Options

However, here are a few words of caution: Do not trade based on these numbers only. All these numbers, including IV, have no meaning in illiquid options and can show wrong values. Please do not trade illiquid options. Nifty, Bank Nifty, and top 10 stocks are reliably liquid, and the next 40 are somewhat liquid. Liquidity and reliability drop after this point. Therefore, all these numbers may work only for Nifty, Bank Nifty, and the top stocks in the current expiry. PCR, Max Pain and IV Percentile do not have high predictive power. They have meaning only if backed by high OI and high volumes.They work only in the current expiry, after the first five days or so. They might not work in single stocks without much volume or OI. Do not trade ONLY based on these numbers. Use these in combination with other indicators. OPEN INTEREST (OI) Option sellers are big institutions, option buyers are small. Big guys are usually right. A build-up in Calls usually means big people are selling Calls, and are betting the market won’t go up. A build-up in Puts means big people are selling Puts, and are betting the market won’t go down. So a strike with huge call OI will be a resistance, and a strike with huge Put OI will be a support. PUT-CALL RATIO (PCR) High PCR (> 1) means the puts are more in number than calls. This means the option sellers are comfortable selling puts more than selling calls. This is a bullish sign. Having said that, an extremely high PCR, usually 1.3+ might mean an overbought stock and may result in bearish reversal Low PCR (< 0.5) means the puts are less in number than calls. This means the option sellers are comfortable selling calls more than selling puts. This is a bearish sign. Having said that, an extremely low PCR, usually around 0.3 might mean an oversold stock and may result in bullish reversal MAX PAIN Max pain theory says a stock has a high chance of expiring at a point where the option sellers will have the least loss and buyers have the maximum loss. This theory, though not proven, is used by traders. Max Pain data for singles stocks is unreliable, especially if there are no puts or no calls in the given expiry. IV PERCENTILE (IVP) IVP measures how high the IV of a stock is. It takes the ATM IVs of a stock for the last 250 days and compares the current IV with those historical IVs. It then tells how many days in the 250 has the IV been less than the current IV. If IVP = 90%, it means the current IV is more than 90% of the daily IVs in the same stock. This means it is a high IV for that stock. Similarly, a low number indicates a relatively low IV. We do not show IV Rank because IVP is way more reliable than IV Rank. If there are one or two extremely high IV values, then all the other IVs will show a low IV rank, which is misleading. IV percentile does not suffer from this problem. See more here IV Percentile can be misleading on Fridays, and sometimes on Thursdays due to option selling near weekends. This happens only in the last two weekends before expiry and happens more on the last weekend before expiry. IVP does not have significance on the expiry week. This is because movement can cause the IVs to spike up a lot in the last three days of expiry. Also, the options have low Vega, which means minor changes in IV should not be looked at as an opportunity to sell. Expiry Week option selling is a Theta and Delta game. Follow us on our social media handles for more such info!

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What is the maximum pain in options?

Key Takeaways –

  • Max pain, or the max pain price, is the strike price with the most open contract puts and calls and the price at which the stock would cause financial losses for the largest number of option holders at expiration.
  • The Maximum Pain theory states that an option’s price will gravitate towards a max pain price, in some cases equal to the strike price for an option, that causes the maximum number of options to expire worthless.
  • Max pain calculation involves the summation of the dollar values of outstanding put and call options for each in-the-money strike price.

What is the max pain analysis?

What is Max Pain? Chapter 5 In tug-of-war, by rule, only one team can win. The side that is stronger and plays as a ‘team’ wins! In the options market, too, there is a constant tussle between options buyers and sellers. This tug-of-war continues till the expiry date.

  1. Option selling (aka writing) requires bigger capital as compared to options buying. Sellers have deep pockets.
  2. Institutions and high net-worth individuals, who prefer options selling, have superior research capabilities. They are also called ‘smart money’.

A natural edge Furthermore, option sellers also have the edge over buyers in certain situations. At expiry, if the option remains ‘out of the money’ or ‘at the money’, it expires worthless, i.e., sellers make money. Thus, in 2 out of the 3 scenarios (except ITM), sellers can make max gain.

  • What is Max pain? Max pain or Maximum Pain is a theory which states that on expiry day, the price of the underlying index/stock moves toward a point that results in maximum loss (pain) to the highest number of options buyers.
  • Alternatively, it also means a minimum loss to option sellers.
  • The theory assumes that deep-pocketed sellers with their purchasing power work as a team (remember tug-of-war) to drive prices towards a more profitable point.

However, this assumption is controversial. Further, this theory makes one believe that option sellers would always make money, which is also not true. Calculating max pain If you look at it from an option chain angle, max pain is basically one particular strike price out of all the available strike prices of an underlying.

  1. Pull the list of all the available strike prices and their OI for an underlying, say Nifty50 index.
  2. Based on the OI, calculate the loss the option sellers (call + put) would make at each strike price if the index were to close at that strike price.
  3. The max pain is at that particular strike price where the net loss is minimum to the options sellers.

If the above calculation were to be plotted on a bar chart, it would look like this. Here, put pain (PP) is the loss suffered by put sellers at different strike prices and call pain (PP) shows the loss suffered by call sellers at different strikes.

Can we trust Sensibull?

Sensibull is a SEBI registered Research Analyst. Your broker is on the login because we have legally partnered with them, and cleared their security tests.

Is Sensibull expert advice worth it?

Sensibull Pro Plan has some compelling plus points with a few ‘not so very’ attractive points. Those serious about options trading could use it to the fullest extent. For others, choosing the free plan should be enough. It’s worth depends upon the trading, and they’re seriousness about trading in the options segment.

How do I measure my pain level?

Visual analog scale (VAS) – This pain scale shows a 10-centimeter line printed on a piece of paper, with anchors at either end. At one end is “no pain,” and at the other end are “pain as bad as it could be” or “the worst imaginable pain.” The person marks a spot or X on the line to show their pain intensity. A doctor then measures the line with a ruler to come up with a pain score.

What is the official pain scale?

Numeric rating scale – The Numeric Rating Scale (NRS-11) is an 11-point scale for patient self-reporting of pain. It is based solely on the ability to perform activities of daily living (ADLs) and can be used for adults and children 10 years old or older.

Rating Pain Level
No Pain
1–3 Mild Pain (nagging, annoying, interfering little with ADLs)
4–6 Moderate Pain (interferes significantly with ADLs)
7–10 Severe Pain (disabling; unable to perform ADLs)

Pain interferes with a person’s ability to perform ADLs. Pain also interferes with a person’s ability to concentrate, and to think. A sufficiently strong pain can be disabling on a person’s concentration and coherent thought, even though it is not strong enough to prevent that person’s performance of ADLs. However, there is no system available for measuring concentration and thought.

Who owns Sensibull?

Abid Hassan He is an alum of NIT Calicut and IIM Ahmedabad and served on SEBI’s Committee on hedge funds. He donates most of his salary on Fridays to one of the richest men in India.

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What is the cheapest price of Sensibull?

Sensibull Pricing Sensibull Lite comes at an introductory offer of Rs 800/month while Sensibull Pro is available at Rs 1300/month.

Is Opstra better than Sensibull?

If you’re looking for a straightforward and comprehensive take on options trading, then Sensibull should do the job perfectly. However, if you’re and expert and want more complex trading tools, then Opstra is the one to choose.

Who is the biggest option trader in India?

Top 10 Traders in India – Here is the 10 top traders in India list:

Premji & Associates was founded by Azim Hashim Premji, a prominent Indian businessman and the current chairman of Wipro Ltd. He is often referred to as the “Czar of the Indian IT Industry” and is a well-known philanthropist. He is among the wealthiest individuals in India. Born in Bombay in 1945, Premji established Premji & Associates as an investment vehicle and held a significant stake in Wipro and other companies such as Tube Investments and JK Lakshmi Cements. Ramesh Damani is India’s top trader and stock market investor known for his investment acumen. He embarked on his journey to financial success in the 1990s when the Sensex was at 600 points. After completing his Bachelor’s degree in Commerce from HR College in Mumbai, he pursued an MBA from California State University. His first notable investment was in Infosys, where he recognised the company’s tremendous potential, owing to his technical background in the US. He invested Rs.10 lakh in Infosys when it went public in 1993, which yielded a return of more than 100 times by 1999. His other notable holdings include Goldiam International, Godrej Industries, Panama Petrochem, and several more. Rakesh Jhunjhunwala, also known as “The Big Bull,” is among the top 10 traders in India of Indian stock market investors who has amassed a significant fortune through intraday trading and investing. He serves as an inspiration to those seeking to succeed in the Indian stock market. Jhunjhunwala, the son of an income tax officer, began his career in the stock market after completing his Chartered Accountancy degree. With a meagre investment of Rs.5,000, he has now amassed a massive net worth of over Rs.41,000 crores as of 2021. Some of his notable holdings include Titan Company, Star Health & Allied Insurance, Metro Brands, Tata Motors, and many more. Ashish Dhawan is a well-known figure in the Indian stock market and is recognised for his expertise as a stock investor, entrepreneur, and philanthropist. Currently serving as the CEO of Central Square Foundation, he played a key role in laying the foundation for Ashoka University. His portfolio is currently valued at Rs.1,971 crore and comprises 16 stocks. Among his holdings are shares worth Rs.259.5 crore in Glenmark Pharmaceuticals Ltd. and stocks in IDFC Ltd., Birlasoft Ltd., Equitas Holdings Ltd., and others. His portfolio has grown by 81.07% in the past year, with an overall increase of 651.38% over the last five years. Sunil Singhania, the CIO of Reliance Mutual Fund, is a prominent figure among India’s top traders, He is highly regarded by stock investors and industry traders alike. Singhania strongly emphasises diversification, as evidenced by his holdings in Jindal Stainless Ltd. Route Mobile Ltd. Polyplex Corporation Ltd. Mastek Ltd. Acrysil Ltd, Saregama India Ltd. Paras Defence and Space Technologies Ltd., among others. His portfolio grew by approximately 260% in the previous year alone, and in just five years, it has increased by an astounding 11,004.55%. Vijay Kedia has an exceptional knowledge of the, and his story is even more inspiring. Despite being born into a family of brokers, his journey in the stock market was challenging. Although he developed an interest in the stock market at 14 years of age, he was forced to enter by the young age of 19, after his father’s passing. He joined his family’s brokerage firm but had no intention of staying. Instead, he ventured into intraday trading, which proved more lucrative for him. Kedia’s popular holdings include Mahindra Holidays, Repro India, Elecon Engineering, and others. Nemish Shah is a significant supporter of ENAM and is recognised as one of India’s top small-scale financial investors. In many ways, Shah’s approach to venture capital is comparable to that of Warren Buffet. A sound investment strategy, according to him, is to invest in companies that generate revenue by increasing usage. Over the last three years, Shah’s stakes in Asahi India, a car glass manufacturer, have more than tripled. Shah’s investment philosophy centres on the notion that investing in companies with a ROCE (return on capital employed) of less than 9% is not justifiable. The critical factor is how the organisation intends to grow in the future. Shah believes that constant fundraising dilutes the value of the company. Ashish Kacholia is another financial guru known for his expertise in selecting mid and small-cap stocks that have the potential to multiply in value. Last year, Kacholia demonstrated his perseverance by achieving impressive results. Kacholia’s other multi-bagger selections include KEI Industries, which generated a 204% return, and APL Apollo Tubes, which returned 116% in 2017. Mr. Porinju Veliyath, an Indian stock market investor and trader, is an exceptional figure. He manages Equity Intelligence India Limited, a company he co-founded. Veliyath had to start working at 17 years of age, to support his family, who were struggling financially. He moved to Ernakulam, where he worked as a telephone operator for the Ernakulam phone exchange while studying for his LLB degree at Ernakulam Law College. Veliyath had a keen interest in the stock market from a young age. After completing his education, he came to Mumbai to pursue his passion, and he has been actively involved in the stock market ever since. Radhakishan Damani, born in Mumbai in 1954, started his career as a businessman and founded Dmart before transitioning to becoming a full-time multibillionaire investor. He established his own investing company, Bright Stars Investments Limited. Radhakrishnan Damani’s portfolio comprises various companies, with Avenue Supermarts Ltd being a leading one. Avenue Supermarts Ltd is the parent company of D-Mart, a prominent hypermarket chain in India. Damani holds nearly 65% of the business shares, which amounts to Rs.2,03,244.3 crore. VST Industries Ltd. is another significant holding in Damani’s portfolio, with a holding of 32.3% worth Rs.1,553.2 crore. The rest of Damani’s portfolio comprises 12 other stocks from different companies, with India Cements Ltd accounting for almost 13% of his investments. The portfolio’s value grew by 89.56% in the previous year and an impressive 9851.24% over five years.

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How many people use Sensibull?

Online stock brokerage firm Zerodha has invested Rs 2.5 crore as seed fund in Sensibull, a startup working in the options trading business. The early-stage firm plans to invest the funds to hire engineering talent to strengthen its tech team. This is the first investment by Zerodha after getting licence from the Reserve Bank of India to operate as a non-banking finance company in the country.

  • Founded by Abid Hasan, Sensibull claims to be India’s first options trading platform, offering everything from simplified options trading for new investors to powerful trading tools for the pros.
  • Currently running with a six-member team, the startup attempts to create possible scenarios for investors so that they can take the best decision while placing bets.

Sensibull claims to have around 20,000 logins into the platform, with 3,000 people being on the platform every day. The startup was incubated by fintech fund and startup incubator Rainmatter, a Bengaluru-based incubator, a startup initiative by Zerodha.

The incubator has so far invested in eight fintech startups, including Tradelabs, Smallcase, Digio, Balance, Neotrade, Sensibull and Streak. While Streak got seed funding in January from Rainmatter, the expense management app Balance Tech was recently acquihired by payments major Paytm. For Zerodha, the investment will increase its footprint and userbase in India.

The eight-year-old startup has 25 branches and 97 partner offices and user base of over 9 lakh in the country. The firm has witnessed a remarkable growth in the recent past and has added clients at a rate of 349 per cent during the current financial. The development was reported by ET.

What is the max pain for spy option chain?

SPY Max Pain The Max Pain for SPY options expiring on Jun 20, 2023 (4 days) is $432.00.

What is Bitcoin option max pain?

How to Visualize the Max Pain Price on Binance Options | Binance Support 2023-03-31 01:58 In options trading, max pain is the strike price at which the underlying asset price would cause most financial losses for the largest number of option holders at expiration.

The Maximum Pain theory states that an option’s price will gravitate towards a max pain price that causes the maximum number of options to expire worthless. In some cases, the max pain price equals the option strike price. You can calculate the max pain price by scanning all Calls and Puts and cross-referencing them against each possible strike price at expiration.

First, calculate the cumulative intrinsic value for both call and put contracts when the index price is at each strike price at expiration, where the intrinsic value measures the worth of the Call or Put Options as below: Call Intrinsic Value = (Index Price – Strike Price) * Open Interest Put Intrinsic Value = (Strike Price – Index Price) * Open Interest As the asset index price at expiration drops, the cumulative intrinsic value of in-the-money Puts at each strike would increase. Alternatively, you can visit the, 2. Select the symbol and expiry date to visualize the max pain price. Please note that the max pain price displayed is for reference only and should not be considered as financial or trading advice. : How to Visualize the Max Pain Price on Binance Options | Binance Support