The point at which a short option or option spread executed at a credit breaks even (it produces neither profit nor loss) in dollar terms at expiration. Beyond this point, the trade becomes unprofitable or loses money at expiration.
October 31, 2023


The point at which a short option or option spread executed at a credit breaks even (it produces neither profit nor loss) in dollar terms at expiration. Beyond this point, the trade becomes unprofitable or loses money at expiration.