One long call on TSLA, three strikes on the same at-expiration chart. The scale never moves, so you can watch the shapes. Grab the offset handle and drag left or right to move the in-the-money and out-of-the-money strikes closer to or further from the $420 spot. Lock any variable to hold it still and isolate one effect.
Profit / loss per share at expiration
In the money At the money Out of the money Breakeven (drag the handle)
Per share
ITM
ATM
OTM
Strike
-
-
-
Premium (cost)
-
-
-
Breakeven
-
-
-
Move needed
-
-
-
Max loss (capped)
-
-
-
Chance of profit
-
-
-
Plain English
Three things to know about picking a strike:
Cheap strikes cost you certainty. In practice a cheaper out-of-the-money call needs a bigger move and has a lower chance of paying off; a pricier in-the-money call has a higher chance.
Your loss is capped either way. Whatever strike you pick, a long call can only lose the premium you paid.
Match the strike to your conviction. Further out for a genuine big-move view, closer in or in the money when you want a higher-probability, higher-cost bet.
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.