Merck Stock Could Be the Right Play for Bullish Traders

The equity is outperforming on multiple fronts

Jun 7, 2022 at 11:49 AM
facebook twitter linkedin


Merck & Co., Inc. (NYSE:MRK) has just pulled back to the $90 level after its recent all-time high, a level that served as prior resistance. Plus, the stock is outperforming with a 17.3% year-to-date gain and a 21.7% year-over-year lead.  

MRK Chart WT June 7

Furthermore, MRK's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 95% of readings in its annual range, while its 10-day put/call volume ratio is higher than 98% of readings. This shows puts being picked up at a much faster-than-usual rate relative to the past year.
 
Short interest is on the rise, adding 27.1% during the most recent two-week reporting period. Finally, our recommended October 87.50 call has a leverage ratio of 8.3 and will double in an 11.4% rise in the underlying stock.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this MRK commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners