4.3 Breakeven points for call options - Deribit Options Course Basics4.3 看涨期权的盈亏平衡点 - Deribit 期权课程基础知识

just as with options that use dollars as collateral it is useful for traders to know where their cryptocurrency options will break even it's important to be aware of the difference in how this is calculated for cryptocurrency options to avoid any unwanted profit or loss surprises for call options that use dollars as collateral you may remember that the break-even point is simply the strike price plus the premium paid for cryptocurrency call options though we need to use the following formula the strike price divided by 1 minus the premium and this time it is the premium amount in bitcoin per contract that we use in the calculation not the dollar value before we look at some examples it's worth mentioning that as with the dollar options the break-even point for cryptocurrency options is the same for the buyer and seller example one the higher the option premium the further away from the strike price the break-even price will be high option premiums favor the option seller then as the price needs to move further before the seller will start making a loss the option buyer on the other hand will of course benefit from lower option premiums because the price will then need to move a smaller distance before they start to make a profit in summary the break-even point for cryptocurrency call options is not calculated in the same way as for dollar options for this reason it's important not to confuse the two calculations remember to use the bitcoin premium of the option rather than the dollar equivalent it is also the per contract amount that should be used regardless of the actual position size the larger the premium of the option the further away from the strike price the breakeven price will be