Saw someone had placed a big order of the size of some 5 million either early today or after hours yesterday. [One place you can see this is http://www.freestockcharts.com. Go there, enter MRK, and choose something like 2 minutes in the graph so that you can pick out large individual trades.] If it is good
for some smart money on a day when every one's (except the long term value investor's perhaps) stomachs are churning, then I am even more enthused. So, I bought some at about 46.5 and wrote a 2015 call for 55 priced at $1.64. With a 4% dividend on the stock, I reckon even if my call gets exercise, I am not doing badly. The hedge is not a lot since it covers only a 3.5% or so tumble, but I am not worried about the long term given all my research into the stock. Who cares if it does slide further in the short run?
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