Symbol: Drive Shack Inc Current Price: $4.66 Purchase Price: $4.66 Number of shares: #400 Total cost: $1,864
Option: Write (Sell<-- Always want to be Bank or Casino) Option: 18th May $5.00 Call Price per option: $.20 Contracts: #4 x 100 Total cost: $80 (credit, you get now back in account) Estimated returns: Drive Shack Inc at $4.66 on 22nd Mar 2018 Maximum risk: $1,784 Maximum return: $216 at a price of $5 at expiry Break-evens at expiry: $4.46
*Note: Not much down size, for a covered call for next around 60 days. Only 0.54 price action bullish run to hit $5.00 (goal), then you could see your position anytime before date of expiry, if it will not cost you much money. PA is right on Golden Ratio of Fib. Ret...which should be respected by PA for reversal.