Short put breakeven
Definition · Level 3 · Spreads & short options
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The strike minus the premium received. Above it, a sold put makes money at expiration; below it, the put loses money.
Example
Sold the 30 put for 0.85 → breakeven 29.15.
Where Tradecraft teaches it
Level 3 · Spreads & short options, in the lesson “Selling options: the short put”: Why selling an option is a different risk from buying one, and the short put: profit, breakeven and loss.
Related terms
- Short premiumBeing a net seller of options: you collect money up front and profit if the options lose value through time decay, falling implied volatility (IV)…
- Short PutSell a put and collect the premium. You are paid to promise to buy 100 shares at the strike if the stock falls below it.
- Back-spread danger zoneWhere a back spread loses the most at expiry: the stock sitting at the long strike.
- BodyThe middle strike of a butterfly, short in a long fly: where a long fly earns the most at expiration.
- Breakeven win rateHow often a trade must win just to net zero, treating each outcome as a full win or a full loss: max loss ÷ (max profit + max loss).
- Broken-Wing ButterflyA butterfly with one wing pushed out: buy one call, sell two, and buy one much further away, so the two wings are different widths.