What the Options Market Tells Us About Merck & Co

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

And retail traders should know.

We noticed this today when the positions 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.

Today, Benzinga's options scanner spotted 8 options trades for Merck & Co.

This isn't normal.

The overall sentiment of these big-money traders is split between 37% bullish and 62%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $28,160, and 7, calls, for a total amount of $702,256.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $105.0 to $130.0 for Merck & Co over the last 3 months.

Analyzing Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Merck & Co's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Merck & Co's whale activity within a strike price range from $105.0 to $130.0 in the last 30 days.

Merck & Co 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

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.

Merck & Co's Current Market Status

• With a trading volume of 3,214,720, the price of MRK is up by 0.48%, reaching $126.43.
• Current RSI values indicate that the stock is may be overbought.
• Next earnings report is scheduled for 70 days from now.

What Analysts Are Saying About Merck & Co

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $140.4.

• An analyst from Barclays has decided to maintain their Overweight rating on Merck & Co, which currently sits at a price target of $145.
• Maintaining their stance, an analyst from UBS continues to hold a Buy rating for Merck & Co, targeting a price of $148.
• An analyst from Truist Securities persists with their Buy rating on Merck & Co, maintaining a target price of $139.
• Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for Merck & Co, targeting a price of $135.
• An analyst from Cantor Fitzgerald downgraded its action to Overweight with a price target of $135.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Merck & Co with Benzinga Pro for real-time alerts.