Calculating break-even prices for different option strategies isn't as complicated and overwhelming as it might seem.

Yes, you do need to perform some basic math functions to find different break-even prices, but it's certainly not rocket science.

Plus, it's an invaluable concept to master because it's critical to your success as a trader.

In today's show, I'll help you understand what break-even prices are and how to calculate them for all of the most popular option strategies.

Yep, that's right. We're going to walk through everything together step-by-step so you can finally master it once and for all.

Let's get started.

You're listening to the Option Alpha Podcast from Option Alpha dot com where we show you how to make smarter trades.

Learn how the stock market really works and generate consistent monthly income.

Now, your host and head trader at Option Alpha dot com, Kirk Depluses.

Hey everyone, this is Kirk here again from Option Alpha dot com working every single week to make this the most popular investing podcast offered online because it's based on one thing

and one thing only and that's helping you consistently place smarter trades.

So thank you again so much for tuning in today and welcome back to show number 219 on how to calculate break-even prices for different option strategies.

This one's going to be a deep dive episode. We're going to spend a lot of time here together and we're going to go through calculating the break-even prices for the top 10 most popular or most commonly used option strategies.

We're going to work our way from very simple strategies like long calls and long puts to more complex strategies like short put spreads and short call spreads and long call spreads.

And then we'll go all the way to the most complex I would say strategies to calculate break-even prices on which are really the deep multi-leg multi-spread strategies like iron condors and iron butterflies.

Where you actually have multiple break-even prices yes multiple break-even points for your particular payoff diagram.

Now a good news for you is that if you're following along on this podcast we made everything super easy to follow along with with visual aids and graphs right inside the show notes.

So just head on over to option alpha dot com slash show 219 again that's just the number 219 option alpha dot com slash show 219 and you can follow along as we go through today's show.

With some visual payoff diagrams that help us with calculating break-even prices as always we've got a ton of resources completely free and available for you inside of our education right on option alpha dot com.

Our handbook of topics and learn articles is flush with different ideas and different ways to trade and help you understand all these concepts forwards backwards inside and out.

Today our focus is on deep dive understanding break-even prices and exactly how to calculate them and I think for many traders many traders that are particularly new to options trading think that it's some wild crazy mathematical calculation.

But it's actually not that complicated yes it does require some basic math but like we said in the intro it's actually not rocket science and frankly it's critical to your success as a trader that you understand.

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