Red Violet, Inc. (RDVT) Max Pain Analysis
Max pain is the strike price where aggregate option buyer payout is minimized at expiration. It represents the price at which option writers retain the most premium.
Red Violet, Inc. (RDVT) operates in the Technology sector, specifically the Software - Application industry, with a market capitalization near $644.6M, listed on NASDAQ, employing roughly 215 people, carrying a beta of 1.71 to the broader market. Red Violet, Inc. Led by Derek Dubner, public since 2018-03-27.
Snapshot as of May 15, 2026.
- Spot Price
- $46.66
- Max Pain Strike
- $40.00
- Total OI
- 496
As of May 15, 2026, Red Violet, Inc. (RDVT) max pain sits at $40.00, which is below the current spot price of $46.66 (14.3% away). Spot sits 14.3% below max pain - the gap is wide enough that the pinning effect alone is unlikely to close it; expect catalyst flow, positioning unwinds, or rebalancing to drive the actual price path before any expiration pull. RDVT sits in the lower-price band (spot $46.66), where $0.50-$2.50 strike spacing makes pin-to-strike effects easy to spot but per-contract dollar gamma is smaller. Total open interest across the listed chain is comparatively thin (496 contracts), so single-strike pinning is less reliable than it is for high-OI names. RDVT is currently in positive dealer gamma ($6.0K), the regime that mechanically reinforces pinning by inducing dealers to buy weakness and sell strength near heavy-OI strikes. Max pain identifies the strike at which the aggregate dollar value of all outstanding options contracts would expire with the least total intrinsic value, a gravitational reference rather than a price target.
RDVT Strategy Implications at the Current Max Pain Level
With spot 14.3% from the $40.00 max-pain level and Red Violet, Inc. in a positive-gamma regime, where dealer hedging mechanically pulls spot toward heavy-OI strikes, strategy selection turns on cycle position and dealer positioning. Iron condors and credit spreads centered near the max-pain strike capture the typical end-of-cycle convergence when the regime supports pinning; ratio backspreads or directional debit structures fit names where catalyst flow is likely to overwhelm the hedging-driven pull. The gamma-exposure page shows the per-strike dealer book that determines whether hedging will reinforce or fight the pin.
Learn how max pain is reported and how to read the data →
Frequently asked RDVT max pain analysis questions
- What is the current RDVT max pain strike?
- As of May 15, 2026, Red Violet, Inc. (RDVT) max pain sits at $40.00, which is 14.3% below the current spot price of $46.66. Max pain identifies the strike at which aggregate option-buyer payouts at expiration are minimized; it is a gravitational reference, not a price target. A 14.3% gap is wide enough that the pinning effect alone is unlikely to close it; expect catalyst flow, positioning unwinds, or rebalancing to drive the price path before any expiration pull.
- Does RDVT pin to its max pain strike at expiration?
- RDVT is currently in positive dealer gamma, the regime that mechanically reinforces pinning. Dealers hedging long-gamma books buy weakness and sell strength near high-OI strikes, which pulls spot toward those levels into expiration. Total open interest across RDVT (496 contracts) is one input to how plausible a clean pin is - heavier total OI concentrated at fewer strikes raises the probability; thin OI spread across many strikes lowers it. Pinning is strongest in heavily-traded names with large open-interest concentrations at high-OI strikes during the final week of an OPEX cycle. Whether RDVT actually pins on a given expiration depends on the OI distribution, the dealer-gamma sign, and the absence of catalyst-driven moves that overwhelm hedging-driven flow.
- How is RDVT max pain calculated?
- Max pain is computed by summing the dollar value of all in-the-money options at each candidate settlement strike across listed expirations, then selecting the strike that minimizes total intrinsic-value payout to option buyers. The calculation uses the full open-interest distribution and weighs both calls and puts. RDVT put/call OI ratio is 0.88 - balanced, so the max-pain calculation reflects the strike where the call and put OI distributions cross rather than a single dominant side.