Merck Named Top Pharma Stock, Inks Deal with Codexis

CDXS stock has more than doubled in the past year

Feb 5, 2019 at 10:18 AM
facebook twitter linkedin


Merck & Co, Inc. (NYSE:MRK) is trying to extend its hot streak today, trading up 1.7% early on at $78.16, setting it up for a sixth straight daily win -- its best in at least a year. Traders are responding to a note out of BofA-Merrill Lynch that named MRK stock as the firm's top pick out of the pharma sector. The analyst note predicted more success from Merck's blockbuster cancer drug Keytruda, which helped drive the company's recent earnings beat.

The security was already up over 38.5% year-over-year coming into today, and is again taking aim at its Dec. 4 peak of $80.19. Open interest levels would suggest traders are expecting new highs from the drugmaker, with peak open interest sitting at the March and April 80 calls.

In related news, protein engineering specialist Codexis, Inc. (NASDAQ:CDXS) just revealed a new agreement with Merck. The news has CDXS stock trading up 7% at $20.91, bringing its one-year gain to over 136% and setting it up for its best close since mid-December.

Analysts love the stock, with all six in coverage handing out "strong buy" ratings. On the other hand, short interest is high, accounting for 8.8% of the float. As such, more technical strength could come in the form of a short squeeze.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners