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Break-Even Point - BEP
What does it mean?
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.
In Other Words...
For businesses, reaching the break-even point is the first major step towards profitability.
Related Links
Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.
Related Terms
Expenses | Option | Revenue
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