As with ED I'll need to keep an eye on this position as expiration approaches. That's because I used the September 11 weekly call rather than my usual monthly approach. I did that because the weeklies have tighter strike prices so I was able to snag a pretty good entry point for what amounts time-wise to a "normal" monthly position.
However, September 11 happens to be the ex-dividend date for MRK so if the position is in the money on the 10th by more than option premium (which will include the dividend amount at that point) I'm likely to get exercised. Since the dividend will be $0.45 I'll be watching for a price higher than $58.95.
|Commission shown is for buy only|