Run the max pain pin-watch recipe

What this recipe computes

• Max pain from open interest only (no gamma weighting) for the index/ETF complex.
• The same OI-only level for the session’s top-premium single name.
• The payout curve used to draw that level.

What it does not claim

• Price is not required to close at max pain.
• Max pain is not a GEX wall. Walls weight gamma; this recipe does not.
• It does not replace live 0DTE flow into the close.

How to read it

1. Step 1

   Run the pin watch

   Open Max Pain — The OPEX Pin Watch in Cookbooks.

2. Step 2

   Place it next to walls

   Compare the OI-only strike to call/put walls from the Gamma Structure Map. They can disagree.

3. Step 3

   Check tape into expiry

   If you care about pin risk, read same-session flow. A single max-pain number without tape is folklore.

Frequently asked questions

Is max pain the same as the gamma magnet?

No. Max pain is an OI-only settlement construction. The gamma magnet weights gamma. This recipe exists because those levels can differ.

Should I fade to max pain on OPEX Friday?

The recipe does not say so. Use it as one reference among walls, GEX regime, and live flow.

Related glossary

• Max painMax pain is the underlying price that theoretically minimizes total option-holder payoff at expiration.
• Pin riskPin risk is expiration uncertainty when spot sits near a strike with large open interest: assignment and last-minute hedging get noisy.
• Open interest (OI)Open interest is how many options contracts remain open. Unlike volume, it does not reset each morning and usually updates after the session.
• Call wallA call wall is the strike above spot with the densest call open interest or call-side gamma. Traders often treat it as resistance when dealers hedge.
• Put wallA put wall is the strike below spot with the densest put open interest or put-side gamma. Traders often treat it as support when dealers hedge.

Related personas

• GEX and Option Flow for Index TradersIndex traders care about session character: where call/put walls sit, whether gamma is dampening or amplifying, and whether premium is chasing or fading the move.
• Options Flow for Options SellersSelling premium works until you short the strike the tape is attacking. Flow and walls help you see where demand is concentrated before you choose short strikes.

Related recipes

• Gamma structurePrint today’s walls and magnet from the chain snapshot, then validate with tape if you trade them.
• Zero-gamma flipDecide fade-the-edges vs follow-through from a labeled regime boundary, not from a secret “vol trigger.”