How to Get the BREAKEVEN PRICE for ANY Options Strategy (Options Trading Tutorial)
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 Published On Aug 31, 2020

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An option position's breakeven price is the specific stock price that results in no profit or loss for that options strategy at expiration. You may learn breakeven prices initially by memorizing formulas for each strategy, but you can do better than that.

How can we intuitively understand ANY option strategy's breakeven price at expiration? After this video, you will be able to determine any option strategy's expiration breakeven price by asking one simple question.

We'll go through examples, starting with the easiest and moving on to more 'difficult' examples.

Video Timestamps

0:00 - Introduction
1:21 - Call Option Breakeven Example
3:54 - Put Option Breakeven Example
5:12 - How to Get ANY Option Strategy's Breakeven Price
6:30 - Call Vertical Spread Breakeven Example
8:17 - Iron Condor Breakeven Example
10:46 - Call Butterfly Spread Breakeven Example

Hopefully, you thoroughly understand that the intrinsic value of each option at a given stock price is how you can quickly calculate a strategy's expiration breakeven price, and without just memorizing a formula.

Leave a comment below if you have any questions or feedback!

==== ADDITIONAL RESOURCES / VIDEOS MENTIONED ====

Options Trading for Beginners (The ULTIMATE Guide):    • Options Trading for Beginners (The UL...  

Credit Spread Trading Plan:    • Options Trading With Credit Spreads (...  

What Are LEAPS?:    • What Are LEAPS in Options Trading? (H...   tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.

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