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Option Breakeven Price Calculator

Calculate breakeven price for call and put options to determine the underlying price needed to profit at expiration.

Option Breakeven Price Calculator

Calculate breakeven price for call and put options to determine the underlying price needed to profit at expiration.

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Guide

Understanding option breakeven prices and profit/loss

Call Breakeven = Strike Price + Premium Paid. The underlying must rise above this price for the call option to be profitable at expiration.
Put Breakeven = Strike Price - Premium Paid. The underlying must fall below this price for the put option to be profitable at expiration.
At breakeven, the option's intrinsic value equals the premium paid, resulting in zero profit or loss (excluding transaction costs).
For call options, maximum loss is limited to premium paid, while maximum profit is theoretically unlimited if underlying price rises significantly.
For put options, maximum loss is limited to premium paid, while maximum profit is limited to Strike - Premium (if underlying falls to zero).

Frequently Asked Questions

Option breakeven prices, profit/loss, and expiration analysis

What is option breakeven price?

Option breakeven price is the underlying price at expiration where the option position has zero profit or loss. For calls: Strike + Premium. For puts: Strike - Premium.

How is call option breakeven calculated?

Call Breakeven = Strike Price + Premium Paid. The underlying must rise above this price for the call to be profitable at expiration.

How is put option breakeven calculated?

Put Breakeven = Strike Price - Premium Paid. The underlying must fall below this price for the put to be profitable at expiration.

What happens if underlying price equals breakeven?

If underlying price equals breakeven at expiration, the option has zero profit or loss (excluding transaction costs). The option's intrinsic value equals the premium paid.

What is the maximum loss for option buyers?

Maximum loss for option buyers is limited to the premium paid. Options cannot have negative value, so losses are capped at the premium paid.

What is the maximum profit for call options?

Maximum profit for call options is theoretically unlimited if the underlying price rises significantly. There's no upper limit to how high the underlying can go.

What is the maximum profit for put options?

Maximum profit for put options is limited to Strike Price - Premium Paid (if underlying falls to zero). The underlying cannot go below zero, capping maximum profit.

Does breakeven change before expiration?

Breakeven at expiration is fixed (Strike ± Premium). However, before expiration, option prices include time value, so the underlying price needed to profit may differ from expiration breakeven.

How do transaction costs affect breakeven?

Transaction costs (commissions, spreads) increase the effective breakeven. For calls: Strike + Premium + Costs. For puts: Strike - Premium - Costs. Include costs for accurate breakeven analysis.

Should I exercise options at breakeven?

At breakeven, options have zero intrinsic value, so exercising typically results in a loss after transaction costs. It's usually better to let options expire or close the position before expiration.

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Option Breakeven Price Calculator

Calculate breakeven price for call and put options to determine the underlying price needed to profit at expiration.

How to use Option Breakeven Price Calculator

Step-by-step guide to using the Option Breakeven Price Calculator:

Enter your values. Input the required values in the calculator form
Calculate. The calculator will automatically compute and display your results
Review results. Review the calculated results and any additional information provided

Frequently asked questions

How do I use the Option Breakeven Price Calculator?

Simply enter your values in the input fields and the calculator will automatically compute the results. The Option Breakeven Price Calculator is designed to be user-friendly and provide instant calculations.

Is the Option Breakeven Price Calculator free to use?

Yes, the Option Breakeven Price Calculator is completely free to use. No registration or payment is required.

Can I use this calculator on mobile devices?

Yes, the Option Breakeven Price Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.

Are the results from Option Breakeven Price Calculator accurate?

Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.