Options Trade – Merck & Co Inc (MRK)

I am very happy that this Merck & Co Inc (MRK) covered call trade is becoming a monthly transaction – wish some of my other stocks behaved so obediently. I made the new Covered Call trade today, based on the run the stock has made the last few days, but I think I pulled the trigger too early in the day – left some premium on the table. Here is the trade:

  • Sold: Five (5) July 15, 2022, Calls
  • Strike Price: $95.00
  • *Premium Collected: $500.00

I like this trade because MRK’s fair market value is $94.00, so my Strike Price is over the stock’s fair value. If I lose the stock, I will hopefully buy back in at a lower level later in the year.

*Excludes transaction costs.

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