Long Call Maximum Profit: Unlimited Maximum Loss: Limited Net Premium Paid Upside Profit at Expiration: Stock Price - Strike Price - Premium Paid (Assuming Stock Price above BEP) BEP: Strike Price + Premium Paid Long Put Maximum Profit: Limited Only by Stock Declining to Zero Maximum Loss: Limited to Premium Paid Upside Profit at Expiration: Strike Price - Stock Price at Expiration - Premium Paid (Assuming Stock Price Below BEP) BEP: Strike Price - Premium Paid Covered call Maximum Profit: Limited Upside Profit at Expiration if Assigned: Premium Received + Difference (if any) Between Strike Price and Stock Purchase Price Upside Profit at Expiration if Not Assigned: Any Gains in Stock Value + Premium Received BEP: Stock Purchase Price - Premium Received Protective Put Maximum Profit: Unlimited Maximum Loss: Limited to Strike Price - (Stock Purchase Price + Premium Paid) Upside Profit at Expiration: Gains in Underlying Share Value Since Purchase - Premium Paid BEP: Stock Purchase Price + Premium Paid This is what I have summarized for my understanding. Correct me if I am wrong. Thanks.
In the Protective Put Case: You Own Stock. So you payed S0 --> Purchase Price. You Bought a Put on that. So you paid a Put Premium P0. Now split up the gain at the end, when Stock Price was ST into 3 segments: Gain on Stock: ST-S0 Put Premium: -P0 Put option Value = Max (0, X-ST) Total Gain: Sum of all three above. Max Loss: When ST = 0; -S0 -P0 + X