Chapter 06 · Section 6.1

Break-even Point

Buy Calls
Market Outlook   :  Bullish
Profit Potential :  unlimited
Loss Potential   :  limited to the 
                    amount of the premium                
Breakeven Point: :
The investor breaks even when the market price equals the exercise price:
To reach the point where the investor begins to realize a profit on his call option purchase he must recover the amount he paid for the option.