Why Call Traders Should Consider Merck Stock

The equity sports strong year-to-date and year-over-year leads

Jun 28, 2022 at 10:20 AM
facebook twitter linkedin

Merck & Co., Inc.'s (NYSE:MRK) recent breakout above the $88 level took out both its 2021 and 2000 highs. Outperforming with 22.1% year-over-year and 21.6% year-to-date gains, MRK also provides a decent valuation with a forward price-earnings ratio of 12.   

MRK Chart June 28

There is still room for upgrades, too, with eight of the 16 analysts in coverage carrying a lukewarm "hold" rating. And while short interest is low, it's worth noting that it's risen 37.5% over the past month.
A shift of sentiment in the options pits could provide tailwinds as well. MRK's Schaeffer's put/call volume ratio (SOIR) of 0.78 ranks higher than 99% of readings from the past year. Echoing this, the equity's 10-day put/call volume ratio of 0.94 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 98% of readings from the past 12 months, showing puts being picked up at much faster-than-usual pace.
Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a high 99 out of 100, meaning MRK has exceeded option traders' volatility expectations during the past year. Lastly, our recommended call has a leverage ratio of 7.6 and will double in a 12.6% pop in the underlying equity.

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.

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