Buying SPX Calls

SPX Index is above break-even point of 1444 at expiration
 

 
If the SPX level, or its exercise settlement value, is above the break-even point of 1444 at expiration, the SPX 1410 call will be in-the-money and would be exercised.

For instance, say the SPX settles at 1455. The cash settlement amount received upon exercise would be:

The net profit for the SPX 1410 call in this case would be:

  $4,500   cash settlement amount received at call’s exercise
- $3,400   total premium initially paid for call
  $1,100   profit

This net profit of $1,100 represents a return on an initial investment of $3,400 total premium paid for the call of approximately 32.4% over the 3-month life of the call contract.