Breakeven Point - BEP
1. In general, the point at which gains equal losses.
Breakeven Point: The point beyond which a trade begins to be profitable. Up to this point, it is a losing trade.
Breakpoint: A purchase amount that qualifies for a reduced sales charge for mutual funds.
Breakeven Point = Fixed / Contribution per Unit Output
The break even point is also the point on a chart indicating the time when something has broken even, and is a general term for not having gained or lost something in a process.
(Breakeven point = Fixed Costs / (Unit Sales Price - Variable Costs))
Breakeven Analysis Example ...
Calculating the breakeven point:
Stalled the sale of a bear spread = exercise price of sold CALL + CALL sold Premium - Premium CALL bought ...
2) Calculate the breakeven point: IBM stock must rise to $124 11/16 to break even. For the October protection, IBM must rise to $126 15/16.
As the graphs show, the breakeven points for this strategy can be a fair distance from the current stock price considering the short time frame. At expiration of the November put, the common would have to fall by rise by about 7.0% or rise by about 9.
Your breakeven point is 74.9 - at that price the 80 puts will be worth $5.10 (80.0 - 74.9). Below 74.9 you will lose money at the same rate as if you owned the stock.
Then you will have some people say: "if I double my position at this low price, then my cost will be less and my breakeven point will be lower".
Thus, 7 X 15 = 105%, just over the breakeven point for his original investment. In my way of looking at investment, those are dreadful odds.
3. Move a stop loss for the remaining lots to the breakeven point.
4. Close the 2nd lot at 30-50 pips.
5. Move a stop loss for the remaining lots to breakeven +10.
The graphic depiction of a trade, showing the potential Risk, Reward, and Breakeven Points as the underlying security price deviates within a range of prices. ...
Risk Reversal ...
4% to breach the effective breakeven point on the downside at $28.66, while maximum possible profits of $0.65 per contract accumulate if the stock drops 4.6% to settle below $28.00 at March expiration. Call selling up at the Mar.
The price of a financial instrument at which the option buyer recovers the premium, meaning that he makes neither a loss or gain. In the case of a call option, the breakeven point is the exercise price plus the premium.
Break out ...
up to be, trade continues in my favour to +35 I take another £5pp off as the move was not strong and took some time, I then move my stop 10 pips inside my entry, price goes against me taking out my stop and carrying on past my breakeven point, ...
Are you long all 3? I.e. long the call, the put and the future? If so, your position is synthetically the same as a long call with a breakeven point at 4693.
Short straddle: An options position in which the investor sells both a call and a put on the same security. The position is profitable if the stock price remains between the two breakeven points.
If the stock rose to $35/share, though, it'd be at the money.If you ignore transaction costs (the premium you pay to buy the option), the point where an option is "at the money" is the breakeven point.
for the shares and the strike price, plus the premium paid for the option contract. Because you pay a premium to purchase the contract, it's important to consider the amount of the premium when calculating your loss potential and breakeven point.
If it opens lower and starts trading lower, close out the position. 10/26 It should have been closed out on Monday as it closed below the T-line. Once it came back down below the breakeven point after trading higher, ...
 See also: Break, Point, Trading, Profit, Stock
  
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