Break-even
Also written: break-even rule
The risk at which a call's expected value equals its cost: $10 ÷ $36 ≈ 0.278. Calling anyone above that risk pays off on average.
Also written: break-even rule
The risk at which a call's expected value equals its cost: $10 ÷ $36 ≈ 0.278. Calling anyone above that risk pays off on average.