Every strategy, whether itor will share similar characteristics. Specifically, each strategy will have a profit region, a loss region, and a break-even point. Well, by definition, the break-even point equates to the point of the underlying stock price that should result in a break-even result in the trade. If that is the case, why do some of our positions show a loss, when they hit this break-even point?
Today, we look to ‘unlock the logic’ behind that very question.