You sold one TSLA put and set aside the cash to buy the shares if you get assigned. You keep a credit up front. The scale never moves, so you can watch the shape. Grab the blue dot: left and right changes the stock price, up and down changes implied volatility. Drag the strike line too. Lock any variable to hold it still and isolate one effect.
Profit / loss per share
Value today (drag the dot) At expiration Max profit (the credit)
Credit collected
$0
per share, up front
Profit / loss
$0
per share
Breakeven
$0
stock at expiration
Max profit
$0
the credit, capped
Plain English
Three things to know about a cash-secured put:
You get paid to wait to buy. In practice you collect a premium for agreeing to buy the stock at the strike, and you set the cash aside so you can actually do it.
There are two workable outcomes. Above the strike you keep the premium and buy nothing. Below it you buy the shares at the strike, effectively at a discount by the premium you collected.
Only do this on stocks you actually want to own. Your downside is a lot like owning the stock bought at the strike, minus the premium, all the way down. Generally speaking, size it as if you will be assigned.
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.