Turn a trade idea into a written plan before you click buy. Pick a bought option on TSLA (spot $420), set your account and rules, and get a plan card that states your size, your exits, and your worst case in plain numbers.
Your trade idea
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Auto-priced. Type to override.
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Default premium is priced with Black-Scholes at spot $420, 45 days, 45% IV. Reset the premium field (clear it) to return to the auto price.
Your trade plan
Payoff at expiration (per contract)
Before you click buy
Plain EnglishA trade plan decides your size, your exit, and your worst case BEFORE you click buy, so the trade runs on rules instead of emotion. For a bought option your max loss is simply the premium you paid - nothing more to guess at.
Three things a trade plan locks in:
Your size. How many contracts fit the small slice of the account you are willing to risk - decided by math, not by how excited you feel.
Your exits. A profit target and a stop, both written down, so you sell on a rule instead of a feeling in the moment.
Your worst case. For a bought call or put the most you can lose is the premium you paid, and you know that exact dollar figure going in.
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.