Chapter 06 · Section 6.1

Breakeven Point

Market Outlook   :  VOLATILE
Profit Potential :  practically 
                    unlimited
Loss Potential   :  limited to 
                    the sum of 
                    the premiums
Breakeven Points  :
The breakeven points occur when the market price at expiration equals the exercise price ...
The trader is long both a call and a put. Therefore, he may have two breakeven points.