Decoding Merck & Co's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bullish stance on Merck & Co MRK.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with MRK, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 18 uncommon options trades for Merck & Co.

This isn't normal.

The overall sentiment of these big-money traders is split between 72% bullish and 22%, bearish.

Out of all of the special options we uncovered, 9 are puts, for a total amount of $683,798, and 9 are calls, for a total amount of $354,290.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $75.0 to $135.0 for Merck & Co over the recent three months.

Insights into Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Merck & Co options trades today is 2441.71 with a total volume of 4,415.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Merck & Co's big money trades within a strike price range of $75.0 to $135.0 over the last 30 days.

Merck & Co Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

About Merck & Co

Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent pediatric diseases as well as human papillomavirus, or HPV. Additionally, Merck sells animal health-related drugs. From a geographical perspective, just under half of the company's sales are generated in the United States.

In light of the recent options history for Merck & Co, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of Merck & Co

• With a trading volume of 10,802,710, the price of MRK is down by -0.75%, reaching $85.03.
• Current RSI values indicate that the stock is may be oversold.
• Next earnings report is scheduled for 70 days from now.

What The Experts Say On Merck & Co

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $108.8.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Guggenheim has decided to maintain their Buy rating on Merck & Co, which currently sits at a price target of $115. * An analyst from Morgan Stanley has decided to maintain their Equal-Weight rating on Merck & Co, which currently sits at a price target of $106. * An analyst from Citigroup persists with their Buy rating on Merck & Co, maintaining a target price of $115. * An analyst from BMO Capital persists with their Market Perform rating on Merck & Co, maintaining a target price of $96. * Maintaining their stance, an analyst from B of A Securities continues to hold a Buy rating for Merck & Co, targeting a price of $112.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Merck & Co, Benzinga Pro gives you real-time options trades alerts.