BY ANDREW GIOVINAZZI
January 04, 2024
Yo Pit Crazies,
Merck and Co. (Ticker: MRK) spend most of 2023 going down. At the end of 2023 into 2024 there was a new change in tone. Let’s call it a drug fueled rally. It made a nice candidate for the Easy Trade Button and even spending the day skiing I could close some calls on a break.
MRK 6 month chart
The rally in MRK is not the most surprising thing..
Do you want to know what it is?
IV is crazy cheap
Massive upside candles and MRK IV are at year lows. That is right year lows for longer dated options. It is almost a license to steal. The Easy Trade Button strategy likes momentum and cheap options then lets the movie play. There is a bit more to it since I take great pains to pick the most explosive strikes but it is a “range trade”. If the stock likes going straight up, that is fine too
90 day Implied Volatility in MRK
Sometimes it can pay for the family day trip to the slopes. Learning how to buy options well is a skill traders can learn. Join me in the Easy Trade Button!
To Your Trading Success,
AG
Andrew Giovinazzi
30-Year Trading Pro
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CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
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OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain