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REDDIT

Can someone help me understand this option on Robinhood?

R
Apr 25, 2025 · 21:30

Sorry for the dumb question. The price of a stock is 2.49. RH has this option available:

[https://i.imgur.com/3MMw9UN.png](https://i.imgur.com/3MMw9UN.png)

RH says breakeven is +0.40%. However, the option costs $250 ($2.50 x 100). If the stock reaches the strike price of 2.50 ("breaking even") didn't I pay $250 for the right to break even, so I would be out $250?

If the strike price equals the current stock price, does that imply that any ask price would be unprofitable to purchase?

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