Used in the context of securities to refer to the price at which a transaction produces neither a gain nor a loss. Also used in the context of options , the term has the following definitions:
1. long calls and short uncovered calls strike price plus premium .
2. long puts and short uncovered puts : strike price minus premium .
3. short covered call : purchase price minus premium .
4. short put covered by short stock : short sale price of underlying stock plus premium .