Skip to main content

learn.howToCalculate

learn.whatIsHeading

The break-even price of an options contract is where the trader neither gains nor loses at expiry. For a call it is strike plus premium; for a put it is strike minus premium.

Формула

Profit at expiry = (Price at expiry - Break-even) x 100 shares per contract

Водич корак по корак

  1. 1Call break-even = Strike price + Premium paid
  2. 2Put break-even = Strike price - Premium paid
  3. 3Profit at expiry = (Price at expiry - Break-even) x 100 shares per contract

Worked Examples

Инпут
Call option: strike $100, premium $5
Резултат
Break-even = $105; stock must exceed $105 at expiry for any profit

Frequently Asked Questions

What is Options Break Even?

The break-even price of an options contract is where the trader neither gains nor loses at expiry. For a call it is strike plus premium; for a put it is strike minus premium

How accurate is the Options Break Even calculator?

The calculator uses the standard published formula for options break even. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.

What units does the Options Break Even calculator use?

This calculator works with inches. You can enter values in the units shown — the calculator handles all conversions internally.

What formula does the Options Break Even calculator use?

The core formula is: Call break-even = Strike price + Premium paid. Each step in the calculation is shown so you can verify the result manually.

Подешавања