The phrase "break even of" is not grammatically correct and should not be used in written English
The correct phrase is "break even point" or "break even." These phrases are used to describe a situation where income and expenses or profits and losses are equal. Correct: The restaurant will reach its break even point after six months of operation. Incorrect: The restaurant will reach its break even of after six months of operation.
"Only the super wealthy with an eco-conscience will be able to wait now for a breakeven of 14 years on a solar investment".
"This underlines the benefits of the transaction to shareholders," intones the bidder, "particularly in the current oil market downturn, as it structurally reduces the oil price breakeven of Shell".
In that case, they face an expiration breakeven of $12.50.
The breakeven of a long call is equal to the strike price plus the option premium.
Thus, the overall picture seen from option trades was positive, although some investors are hoping for incredible gains of about 48% from the current price to arrive at the breakeven of $15.21 by expiration.
This week's pre-deal price of around $111 a barrel wasn't high enough to make the breakeven of $115, and the announcement of the deal resulted in an instant drop to $109.
The trader starts to lose money on the position if shares plunge 33.3% from todays high of $5.44 to trade below the breakeven price of $3.625 ahead of expiration in May.
The investor makes money on the new position if shares of the underlying stock rally through the breakeven price of $21.37 ahead of May expiration day.
Therefore, downside protection provided by the transaction kicks in if Cisco's shares fall back down through the breakeven price of $21.66 ahead of expiration in July.
Profits start to amass if shares slide 10.0% lower to trade beneath the breakeven price of $14.00 ahead of March expiration day.
The ratio of twice as many sold put options could result in losses for the trader responsible for the spread if shares plunge 11.85% to trade beneath the effective lower breakeven price of $29.90 ahead of January expiration.
