With option strategies, calculating the maximum profit price level (look at where short call/short put = 0) and maximum loss price level (look at where long call/long put = 0) are straightforward. But what rule do you have to calculate breakeven? I find it can be harder given there can be multiple breakeven prices.
equate profit to zero.
i find that the best way to approach option calculation is not to remember the formulas for max loss, profit, or breakeven, but to derive the formulas by drawing out the graph for the option and start from there. as schwester points out, there are over 70 formulas in this reading, and it would be counter-productive to remember them all without having a good understanding of what’s going on.