Breakeven Point - BEP
1. In general, the point at which gains equal losses.
2. In options, the market price that a stock must reach for option buyers to avoid a loss if they exercise. For a call, it is the strike price plus the premium paid. For a put, it is the strike price minus the premium paid.
Also referred to as a "breakeven".
For businesses, reaching the break-even point is the first major step towards profitability.
2. In options, the market price that a stock must reach for option buyers to avoid a loss if they exercise. For a call, it is the strike price plus the premium paid. For a put, it is the strike price minus the premium paid.
Also referred to as a "breakeven".
For businesses, reaching the break-even point is the first major step towards profitability.
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