Trade Results - Merck
Trade Results Hello Smart Option Sellers! Great job everyone. Merck & Co (MRK) We were filled no problem yesterday on the new MRK put-sell trade. Most of the fills came between $.27 - $.30 per contract, so we'll take our official mark at $.28 per. Here's what we did: Sold (sold-to-open) the MRK April 2018 $47.50 put option for an official sale price of $.28 per contract as an opening transaction (sold-to-open). If you have not entered your order yet, or did not get filled yesterday, just keep your order working GTC at $.25 or higher. Remember, do not sell for anything lower than $.25 per contract. I understand that this trade is a bit longer in duration (April 2018 expiration), but with volatility still scraping along all-time lows, we are forced to live with smaller payouts. See the current chart of the VIX here. Once you click on the link above, you can adjust the parameters on the website to see a longer period of time. The VIX is a broad measure of how volatile (or not) the general market is behaving. The VIX is not a directional indicator. It merely shows the level of complacency or panic in the general market. With the slow continual move higher in the stock market, there is not much fluctuation in prices, hence, not much volatility. This is why the VIX remains very low. And when volatility is low, it suppresses the prices of option's premiums. One way to combat the low volatility environment when selling options (as you should know by now), is by using a longer expiration period. More time = more money. And even though we use a longer-dated option, most of the time we won't have to wait that long to take our profits. Our average time in a trade since inception has been about three months or so. Also, we try to stick with our rules of only using stocks priced at $50 or under. Even though MRK is trading for $63.80 currently, we are using the $47.50 strike price as our target - still under $50. It's hard sometimes to find the best plays on stocks under $50 because everything has gone straight up over the last eight years. Not that I'm complaining (nor should you!). If you've owned stocks over this time period, you've probably done pretty well. If any other new trade pops up, I will of course send out at a new alert. Continue to can reach us here That's all for now. Regards, Lee Let's Grab That Cash!
Continue to work all other trades as instructed and continue to hold all other open positions as-is. See the Current Portfolio below for current prices & instructions. Note on the Current Portfolio - if you are a new subscriber and don't have a position yet on any of our trades, make sure you enter your order at the original recommended sell prices. Do no enter any order unless the current option price is at, or higher, than the official recommendation. If you are unsure or have any questions, please ask us!
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Warren Buffett Report I continue to get good feedback on this report, so I'll keep this notice going for the time being so everyone has a chance to see it. If you need the link again, click here to read about it.