Strategy
Breakeven Point
Price where position has zero P/L
What is Breakeven Point?
Breakeven Point The underlying price at which an option position results in neither profit nor loss at expiration. For calls: strike + premium paid. For puts: strike - premium paid.
Complete Definition
The underlying price at which an option position results in neither profit nor loss at expiration. For calls: strike + premium paid. For puts: strike - premium paid.
Example
Buy $150 call for $3.00. Breakeven = $153. Stock must be above $153 at expiration to profit.
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