Yes, Time For A New Trade!

New Trade! Hello Smart Option Sellers! Not much has changed since my last alert where I mentioned that we're sitting pretty with our current positions as they're all in profitable territory. In the current bull market environment, it not only gets harder to find good new put-sell trades, but it makes it just as hard to pull the trigger on outright stock buys. Everything just keeps going up and who wants to buy at the top? But is it the top? If you don't buy today, will you miss out when it goes up tomorrow? Who knows. But, I do know that we need a correction at some point. The million dollar question is when does it happen? In order to be successful with investing, I've found that it's easier to just go with what the market gives, instead of trying to predict where and when it will move. You'll miss out on too much if you try to predict all the time. The good thing about selling put options is that we play it with a downside buffer on our side. If the market corrects, we have cushion for downside action. That's why we try to choose strike prices that are 20%-30% out-of-the-money (OTM). With that said, let's jump on a new trade. Merck & Co (MRK) MRK stock is currently trading around $63.70 per share, and has been stuck in $4 trading range between $62-$66 per share since February. See the current chart here. Although MRK releases earnings on 10/27, I don't foresee a huge move to worry us about establishing a new position prior to the event. We've already played MRK successfully in our portfolio and we're getting in at almost identical circumstances. We entered a put-sell on MRK back on March 23, 2017