You bought one TSLA call. 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 loss (capped)
Value now
$0
per share
Profit / loss
$0
per share
Breakeven
$0
stock at expiration
Max loss
$0
the premium, capped
Plain English
Three things to know about a long call:
It's basically providing leverage with a set floor. You control 100 shares of a company you believe in for a small, known cost, a fraction of buying the shares outright.
Your loss is capped at what you pay for the contract. The most you can lose is the premium you paid, no matter how far the stock falls. This is my favorite thing about this form of leverage. This is totally different from margin leverage (the worst kind).
Time is working against you. You need the move before expiration. Time decay and a drop in implied volatility both eat into a call, so generally speaking, it's prudent to buy more time than you think you need.
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.