Work out option break even instantly with clear inputs, formula shown and shareable results.
A long option only profits at expiry once the underlying clears the strike by more than the premium paid. The break-even is strike plus premium for a call and strike minus premium for a put, and the premium is the most you can lose.
Break-even
Call: strike + premium; Put: strike - premium
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Not before expiry — time value means it can be sold profitably on a smaller move. At expiry the break-even is binding.
The underlying must move enough to cover the premium, and the majority of small moves do not.