I made a new Covered Call trade on my existing Merck & Co Inc (MRK) shares today, based on the nice run the stock has made. As you may recall, my entry price was $76.15 per share – based on Merck’s pop, I was able to make the following trade:
- Sold: Five (5) December 17, 2021 Calls
- Strike Price: $95.00
- *Premium Collected: $765.00
According to Morningstar, MRK’s fair market value is $94.00, so I would be cashing out over the stock’s fair value.
If I am called out of the stock in December 2021 – my total profit with MRK, including price appreciation, call options sold, and dividends received – would be *$10,950.00.
*Excludes transaction costs.
P.S. – forgot that I also received 50 Shares in Organon (OGN), which was spun off from Merck last quarter. Current Value: $1,843.50.
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