After subtracting your initial $600 investment, you’ve made a $1,400 profit .
You buy with a strike price of $400 that expires in one month. This contract costs you a "premium" of $6.00 per share, or $600 total (since one contract covers 100 shares). Your Risk: The most you can lose is that $600 premium.
Check out these guides to see these concepts in action and avoid common beginner traps: