The same bullish bet on TSLA, deployed three ways with the same capital. The scale never moves, so you can watch the shape. Grab the blue dot and drag it left or right to change where TSLA ends up. Lock any variable to hold it still and isolate one effect. Notice the only line whose loss has a hard floor.
Profit / loss at your ending price
Shares (cash) Long call Margin (2x) Ending price (drag the dot)
Approach
Exposure
Cash at risk
Max loss
P&L
Plain English
Three things to know about leverage:
A long call caps the loss. In practice the most you can lose is the premium, whatever the stock does. This is the good kind of leverage.
Margin can lose more than you put in. Borrowed money is the dangerous kind; it can take you below zero. Generally speaking, avoid it.
Leverage magnifies both directions. It scales the gain and the loss together, so size it on purpose, not by excitement.
Taxes are not shown here. Options and the underlying stock are taxed differently, and it depends on your holding period and account type. None of this is tax advice.