top of page

New Trade!

New Trade! Hello Smart Option Sellers! In honor of my birthday, here's a little gift to everyone. A new trade! But let's jump on it quickly. Merck & Co. (MRK) That's right! We just closed out a profitable trade on MRK last week, and now we're hopping right back in. For whatever reason, pharma stocks are getting hit hard today. I haven't been able to locate concrete news on why, except for a story on a drug rebate program that's not going into effect. That news is helping the healthcare provider stocks rally today, but I'm unsure why it's affecting the drug makers so negatively. Regardless, let's use this drop as our opportunity to get into a new put-sell trade. Here's what you can choose to do: Sell (sell-to-open) the MRK November 15, 2019 $60 put options for a limit sell price of $0.25 per contract or higher, GTC, as an opening transaction (sell-to-open). With MRK stock near $82.15 per share at the moment, we'll have a solid $22.15 cushion above the strike price, which equates to a fat 27% buffer. I know the $60 strike price is slightly higher than the $50 threshold we like for our portfolio, but when you have a quality company such as MRK, it's ok to bend the rules from time to time. Here's MRK's current chart. It's undergoing a slight pull-back at the moment as mentioned above, but that is sometimes the best time to strike Currently, this put option has a market of $0.25 bid/$0.29 offer, so we should have no problem getting the sales off for at least $0.25 or better. My suggestion (as always) is to first place your offer price somewhere between the bid/ask market. It is not advisable to immediately place your offer right at $0.25 per contract. This can scare the bids away. Be cool about it, and you will be rewarded. If you don't get filled today, makes sure your order is set "GTC". Do not sell for anything less than $0.25 per contract. Get those orders in there now and let us know how you do. Continue to hold all other open positions as-is. Contact us here with fills, comments, questions or concerns. I will be out of the office tomorrow, so I will update the results on Monday. Regards,

Lee Let's Grab That Cash!

Recent Posts
bottom of page