Call option profit calculation
How to calculate Tesla 700 call profit/loss
Calculating P&L Tesla 700 call 29 days to expiration
Let's assume you decided to buy Tesla Long Call.
How to calculate the possible outcomes (profit/loss)?
Case study:
TSLA (Tesla) Long Call 670 strike, 29 DTE (days to expiration)
Premium - $87.21, one option contract usually consists of 100 shares, so the total premium is 100*$87.21= $8721
Purchasing a call is one of the most basic trading strategies and is suitable when sentiment is strongly bullish.
Read more about Call Option.
As you can see on the chart maximum profit is potentially unlimited and the maximum loss is $8721 (the premium you pay).
How to calculate the possible outcomes (profit/loss)?
Case study:
TSLA (Tesla) Long Call 670 strike, 29 DTE (days to expiration)
Premium - $87.21, one option contract usually consists of 100 shares, so the total premium is 100*$87.21= $8721
Purchasing a call is one of the most basic trading strategies and is suitable when sentiment is strongly bullish.
Read more about Call Option.
As you can see on the chart maximum profit is potentially unlimited and the maximum loss is $8721 (the premium you pay).
P&L chart
Tesla call profit chart
As you can see the breakeven point is straight on the 757.21 stock price, which means all stock prices below 757.21will lead you to a loss.
On the other hand, the higher the stock price climbs the higher outcome you'll get. For example at Tesla's stock price of $927, you get a significant profit of $1704.
Now you need to make research and answer questions:
1. Is it real that the stock price goes up from $695 to $927 in one month?
2. Is it fit your trading style to lose $8721 in the worst case?
You can download LAVA option calculator here:
For IOS
For Android
Read more in our options trading guide.
On the other hand, the higher the stock price climbs the higher outcome you'll get. For example at Tesla's stock price of $927, you get a significant profit of $1704.
Now you need to make research and answer questions:
1. Is it real that the stock price goes up from $695 to $927 in one month?
2. Is it fit your trading style to lose $8721 in the worst case?
You can download LAVA option calculator here:
For IOS
For Android
Read more in our options trading guide.
Download LAVA and calculate option profit/loss
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All investments involve risk, including the possible loss of capital. You may not get back what you have originally invested. The material provided herein is general in nature and does not take into account your objectives, financial situation or needs. This is not an offer, solicitation of an offer, or advice to buy or sell securities.
All investments involve risk, including the possible loss of capital. You may not get back what you have originally invested. The material provided herein is general in nature and does not take into account your objectives, financial situation or needs. This is not an offer, solicitation of an offer, or advice to buy or sell securities.