Entered MRK with Feb17 60 Calls. Buy Low sell high. Playing what looks to be an exhaustion gap doji at the bottom of a channel
Trigger: 1.30
Stop: .85
Target: 2.92
R:R: 3:1
I expect a bounce or a gap up in next couple days. If it does not come I will look to exit aggressively because these setups usually work fast if identified correctly.
Multiple reasons making MRK is so attractive to buy stock or option calls. Elliott wave count show that iv wave in undergo and not yet overlapped with wave i. Other reason is the price puased at 38% fibo. Third reason the EMA 70 is hold price from falling. I am in in call option and when wave iv overlapped with wave i I will sell my position. Remember I am...
Long time trend line is supported, and MACD divergence in play. Trade with care as the stock closely correlates with DOW and SPX500. They are both pointing south though.
