Investors in Merrimack Pharmaceuticals Inc. (MACK) saw new options become available this week, for the November 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the MACK options chain for the new November 16th contracts and identified the following call contract of particular interest.The call contract at the $5.00 strike price has a current bid of 5 cents. If an investor was to purchase shares of MACK stock at the current price level of $3.90/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $5.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 29.49% if the stock gets called away at the November 16th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if MACK shares really soar, which is why looking at the trailing twelve month trading history for Merrimack Pharmaceuticals Inc., as well as studying the business fundamentals becomes important. Below is a chart showing MACK's trailing twelve month trading history, with the $5.00 strike highlighted in red:
Interesting MACK Call For November 16th
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