Analysis to interpret the Nifty closing price at the end of the contract using Option Pain. There are 5 trading days to expire and 8 days in all to expire. If you take a position now, that is, if you sell 4800 Put and 5000 Call (Nifty @ 4958 now)how much profit or loss you will make. According to Max Pain the nifty should end at or around 4900. The analysis is to find whether this strategy works out.
Sell 4800 Put Price - 18
Sell 5000 Call Price – 44
Range was 4965-5020... A perfect one.. Profit 62 Points.
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