What Is the Break-Even Point for a Long Call Option?
The break-even point for a long call option is the underlying asset's price at which the option buyer has recouped the premium paid, resulting in neither a profit nor a loss. It is calculated as the option's Strike Price plus the Premium Paid.
At this price, the option's intrinsic value exactly equals the cost of the option. The option buyer will only realize a net profit if the underlying price rises above this break-even point.
Glossar
Long Call
Position ⎊ A Long Call represents the outright purchase of a call option, granting the holder the right to buy the underlying crypto asset at a specified strike price before expiration.
Long Call Option
Derivative ⎊ A long call option, within the cryptocurrency context, represents a financial derivative granting the holder the right, but not the obligation, to purchase an underlying digital asset at a predetermined price (the strike price) on or before a specific date (the expiration date).