Evaluate Position's Breakeven Price

This new decision recipe allows us to compare any position’s underlying price to its breakeven price, short strike, or long strike.

This functionality has been a popular request, and it is now easier than ever to evaluate if a position is inside or beyond its breakeven price. We can use the position recipe to make specific management decisions based on the underlying price relative to the breakeven price, giving us more detail than simply checking if the short strike is challenged. This enables us to quickly see if the position would be in profit at expiration, to close the position automatically if it's beyond the breakeven price, and much more.

We also have the ability to define the exact amount the underlying price is inside or beyond any/call/put leg’s breakeven price or strike price.

For example, we can check if the underlying price is beyond the breakeven price by a penny with less than five days to expiration, and let the bot close the position automatically.

Or, check if the position is in-the-money but still inside the breakeven price. Maybe then you wouldn’t want to close the position just yet.

For short spreads, 'inside' means the underlying price is above the short put spread's breakeven price or below the short call spread's breakeven price. Conversely, 'beyond' means the underlying price is below the short put spread's breakeven price or above the short call spread's breakeven price.

For long options and long spreads, the underlying price must be 'beyond' the breakeven price to realize a profit at expiration. For long call spread's, 'beyond' is above the breakeven price and below the breakven price for long put spreads.