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What Is the Concept of the Breakeven Point for a Call Option Writer?

Breakeven point = Strike Price + Premium Received. The point where profit/loss is zero.
Greeks.Live31.10.25

What Is the Concept of the Breakeven Point for a Call Option Writer?

The breakeven point is the underlying asset price at which the call option writer neither makes a profit nor incurs a loss. It is calculated by adding the premium received to the strike price.

If the asset price rises above this point, the writer starts losing money, and this point is fixed for the life of the option.

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