greywolf85 0 Report post Posted November 28, 2020 Hey there, I'm kind of a new Options Trader and wanted to know what actually is the "Break Even" price is. I'm only asking because as soon as the stock goes up by couple cents, options turn green and you start to make money. Could someone explain if I'm missing something? Share this post Link to post Share on other sites
Kim 7,943 Report post Posted November 28, 2020 Break even means the same as for the stock prices - the price is the same as your purchase price. P.S. Don't assume that "as soon as the stock goes up by couple cents, options turn green and you start to make money". This will depend on how fast the stock goes up, Implied Volatility etc. If the stock goes up, IV can decrease and you can still lose money. If it goes up not right away but after few days, the negative theta will negatively impact the options price. There are many factors involved here. Share this post Link to post Share on other sites
