Break-Even Point (BEP)
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.
Also referred to as a "breakeven". Investopedia Says:
For businesses, reaching the break-even point is the first major step towards profitability. Related Terms:
Expenses
Option
Profit Range
Revenue |