You guys are in a great position with Merck at $75. The market will digest the CEO leaving and with the vaccine out there it should be a good year for people to get back seeing their doctor for the treatments Merck sells.
My theory is Merck will bounce back over $80 by March/April and at some point before the June expiration it will have touched $85. This with the caveat that we could get another market meltdown to throw a wrench in things.
I wish I had kept some ITCI, I sold all mine in the low $30s.
I looked at $75 and $80 strike price. At $85 the $75 had a higher % return (128% vs 104%). The $75's were also more plentiful, so market order had better chance of coming in slightly better. Looking at my notes, $87 was where the two were essentially the same. I was similar thought as you, I considered $85 as the best it could be by June, and probably a bit less. That's why I went with the $75. I could be dead wrong and MRK goes even higher, but need a target price in mind to evaluate a call position. The $75 did have a bit more downside protection, but let's not focus on that
BTW, Calls are not my bread and butter, so not claiming to be an expert by any means, just more a bean counter type who looks at the facts and figures. LOL
ITCI has been interesting trade, I appreciate you turning the group on to that issue. I had exited ITCI back in September, but then got back in mid-October and some more in December. I'm did covered calls again, and have been rolling them forward and moving the strike price up too. As I look back my original SP was $28. My current has a SP of $34 with 2/19 expiration and current price is almost $36. So I'm watching that one and will consider rolling it if I can get the right premium. If I have to let it go like I did in September. I won't be feeling too bad, my XIRR is a little over 200%, so that beats sitting in a CD for sure
It's not been as juicy as it was last year, my XIRR's on the CC I had were 600% (or a straight up 50% return).
BTW, how's it looking with your race to $250K? You still ahead of the curve? I have to think you are given what the market has been doing.