MRK and PG are both moving lower after earnings
Pharmaceutical giant Merck & Co Inc (NYSE:MRK) has reversed its premarket lead, down 2% at $77.20 at last glance. The company posted better-than-expected first-quarter results but cut its profit outlook, expecting a $200 million dent from tariffs. Creeping back down toward its April 16 three-year low of $75.95, MRK is down 22.7% since the start of the year.
So far today, MRK has seen 21,000 calls and 29,000 puts exchanged -- triple the overall options volume typically seen at this point. The May 75 put is the most popular, where new positions are being opened.
Procter & Gamble Co (NYSE:PG) is brushing off a first-quarter earnings beat, down 5% at $157.37 at last glance. Revenue fell short of expectations, and the company slashed its full-year forecast amid economic uncertainty. CEO Jon Moeller told CNBC that there will likely be price increases amid tariffs, but that they're looking at sourcing options.
Today's gap has PG testing a familiar floor around $158, an area that's been visited in July, January, and now April of the last year. The shares are now 5% off in 2025, and have ceded their year-over-year breakeven level today.
PG has seen 7,586 calls and 6,924 puts across the tape so far, which is double the intraday average put volume. The weekly 4/25 157.50-strike put is the most active contract, followed by the May 167.50 call.