Strategy Parameters
Breakeven Analysis
Breakeven Concepts
Single Options
Call: Strike + Premium
Put: Strike - Premium
The stock must move beyond these points to be profitable.
Straddles & Strangles
Two breakeven points: one above and one below the strike(s). The stock must move significantly in either direction.
Iron Condor
Profitable when stock stays between the short strikes. Breakevens are at short strikes ± net credit.