Options

Breakeven Point

The underlying price at which an Option position neither gains nor loses money overall — for a Call buyer, Strike Price + Premium Paid.

The breakeven point is the underlying price at which an Option position neither gains nor loses money overall. For a Call option buyer, it’s calculated as Strike Price + Premium Paid — the underlying must rise above this level for a net profit, not merely above the strike price itself.

See a full worked calculation in What Is a Call Option? Buying Explained With Example.