Break Even Point
The underlying price at which an option trade neither makes nor loses money.
Definition
The break-even point is the price of the underlying at which an option position produces exactly zero net profit or loss at expiry, after accounting for the premium paid or received. Below the break-even (for bullish positions) the trade is at a loss; above it the trade turns profitable. Every option strategy has its own break-even level, and some have two.
Formula
Long call break-even = Strike + Premium paid
Long put break-even = Strike − Premium paid
Why it matters
The break-even tells you how far the underlying must move just to recover the premium before you make any money. A wide gap between the spot and the break-even means you need a bigger move, which lowers the probability of profit. Comparing break-even levels across strikes helps you balance cost against the move you actually expect.
Example
You buy a NIFTY 22,000 call for a premium of 150. Your break-even is 22,000 + 150 = 22,150. NIFTY must close above 22,150 at expiry for the trade to be profitable; at exactly 22,150 you simply recover the premium.
See it live
Use the TradePulse option chain to read live premiums and work out break-even levels for any strike.