A worked example
A bought call with strike 23,000 and premium ₹100 breaks even at an underlying expiry value of 23,100 before costs. At 23,200, 50 units produce ₹5,000 P&L before costs. A bought put has the opposite payoff direction.
How the calculation works
Call intrinsic value = max(underlying − strike, 0). Put intrinsic value = max(strike − underlying, 0). Net expiry P&L = (intrinsic value − premium paid) × quantity − costs. Costs raise a call break-even and lower a put break-even.
What the result does not tell you
Expiry-only illustration for a single bought option. Before expiry, time value and implied volatility also affect premium. This is not a live quote, a pricing model, a settlement instruction or a forecast.
The values are educational calculations, not personal investment advice. Read the simulation disclaimer.
Further reading
References explain general concepts. They do not endorse TradeLab or its simulations.