Max Pain

How Draconic reads it

For each candidate settlement price, sum the intrinsic payout on calls and puts using the selected contract's open interest and contract size. The lowest total identifies the calculated max-pain level. Entry premiums and dealer-side ownership are not captured by that calculation. It does not establish hedging direction or guarantee price pinning. Compare the result with price, flow, and the source's assumptions rather than treating it as a settlement target.