Break-Even Price: How to Use Break-Even Price in Your Brutus Options Ranker Strategy

Break-Even Price

The Break-Even Price is the price at expiration, where a single contract or a spread will have neither any loss or gain for both the option(s) buyer and the option(s) seller. For put contracts, this is the strike price less the option price at position entry. For call contracts, the break-even price is equal to the strike price plus the option price at position entry.

It is more complicated to calculate the break-even price for spreads and there may be multiple break-even prices depending on the unique combination of calls, puts, and stock. When a spread has more than one break even price, this criterion will look at the break-even prices which is closest to the current price of the underlying (stock).


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Hi, this may be interesting you: Break-Even Price: How to Use Break-Even Price in Your Brutus Options Ranker Strategy! This is the link: https://www.optionautomator.com/blog/kb/break-even-price/