Chapter 06 · Section 6.1

Breakeven Point

Market Outlook   :  STABLE
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 short both a call and a put. Therefore, he may have two breakeven points.