What is Breakeven Point in Short Options?

The breakeven point is when the profit from the premium received is exactly equal to the loss incurred due to the asset price rising, so you experience neither a profit nor a loss. In other words, breakeven = price where you stop making profit and start losing money.
Example (Short Call)

• Strike Price: $205
• Premium received: $5

Breakeven Price = Strike Price + Premium Received
= $205 + $5 = $210
This means if the price goes above $210, you will start losing money.