Breakeven CalculationBreakeven Calculation
Calculate the expiry breakeven for calls and puts — and why costs move it further.Calls aur puts ka expiry breakeven calculate karo — aur costs use aur door kyun le jaate hain.
📖 LessonLesson
The breakeven is the NIFTY level at expiry where the trade makes neither profit nor loss (before costs).
Call breakeven = Strike + Premium
Put breakeven = Strike − Premium
For a buyer, NIFTY must go beyond the breakeven to make money at expiry. For a seller, the breakeven is where profit turns into loss.
Brokerage, STT and other charges push the real breakeven a little further. Practise below with random questions.
Breakeven expiry par woh NIFTY level hai jahan trade me na profit na loss (costs se pehle).
Call breakeven = Strike + Premium
Put breakeven = Strike − Premium
Buyer ke liye expiry par paisa banane ko NIFTY breakeven ke aage jaana chahiye. Seller ke liye breakeven woh point hai jahan profit loss me badal jaata hai.
Brokerage, STT aur baaki charges asli breakeven ko thoda aur door le jaate hain. Neeche random sawalon se practice karo.
🛠 Practise itPractice karo
⚠️ Common mistakesCommon galtiyan
- Subtracting the premium for calls (it is added).Calls me premium ghatana (jodna hota hai).
- Forgetting costs, which move the breakeven further away.Costs bhoolna, jo breakeven ko aur door le jaate hain.
- Confusing breakeven at expiry with breakeven before expiry (which also depends on time value).Expiry ke breakeven ko expiry se pehle ke breakeven se confuse karna (jo time value par bhi depend karta hai).
✅ Quick quizQuick quiz
Score 2 out of 3 or more and the lesson is marked complete automatically.3 me se 2 ya zyada score karo, lesson apne aap complete mark ho jayega.
📝 SummarySummary
- Call: strike + premium.Call: strike + premium.
- Put: strike − premium.Put: strike − premium.
- Costs move the real breakeven further.Costs asli breakeven ko aur door le jaate hain.
📚 Sources & market rules usedSources aur market rules
Last reviewed: 2 November 2026 · Version 1.0 · Prepared by the SmaartAlgos Academy team.Last reviewed: 2 November 2026 · Version 1.0 · SmaartAlgos Academy team dwara taiyaar.
Education only. SmaartAlgos is not a SEBI-registered investment adviser or research analyst. Nothing in this lesson is a recommendation to buy or sell any security. Options trading involves substantial risk of loss. Examples are hypothetical or simulated; market rules are shown with their effective dates — always confirm the latest official circulars.
Sirf education. SmaartAlgos SEBI-registered investment adviser ya research analyst nahi hai. Is lesson me kuch bhi kisi security ko buy ya sell karne ki salah nahi hai. Options trading me bada loss ho sakta hai. Examples hypothetical ya simulated hain; market rules effective date ke saath diye gaye hain — hamesha latest official circular confirm karo.