It was nice knowing you guys.Submitted by cyuvlol t3_z4l4k4 in wallstreetbets
drewski2305 t1_ixtpzov wrote
Reply to comment by ChapterJolly8220 in It was nice knowing you guys. by cyuvlol
his breakeven price is not static. it will not change. that is the price he needs it to be at, or below, to make any money on this trade at expiration. monday morning, if spy dips down, he could sell for a profit as there is still some theta value. at expiration, if spy is over his breakeven price, he will lose money. Strike price - premium paid = breakeven price
ChapterJolly8220 t1_ixtrc97 wrote
Breakeven is does mean the profit price. My Breakeven on my current trade is 413 (strike 407) but I’m up 5%. It’s all about what the price is AT expiration and if you’re trading options until expiration - you’re doing it wrong
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