Size and exits
Desk
Price the contract, check the $8–$10 cap, and write the stop before you click buy.
Contract math
One contract. Premium is per share. Cost is premium × 100.
- Cost
- $120.00
- Value at expiry
- $500.00
- P/L
- $380.00
- Break-even
- $551.20
Risk and exits
Stop 30–40% of premium. Target 40–60%. Cap $10.
- Sell stop
- $0.78
- Sell target
- $1.80
- Dollar risk
- $42.00
- Contracts
- 1
- Premium 0.80–1.50
- At least 5 full trading days left
- Dollar risk at or under $10