The break-even point on an option is the price that the underlying asset has to hit in order to enable the option buyer (holder) to recover their premium.
So if a call option has a strike price of £2.50 and the up-front premium paid is 50p, the underlying share needs to rise to £3 (ignoring dealing costs and spreads) to hit breakeven. That's because the holder could then buy the share from the option writer for £2.50 and sell it on in the stockmarket for £3.
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