Spotlight on Merck & Co: Analyzing the Surge in Options Activity

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 12 uncommon options trades for Merck & Co.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 16%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $108,276, and 9 are calls, for a total amount of $551,530.

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 $80.0 to $105.0 for Merck & Co over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $80.0 to $105.0 in the last 30 days.

Merck & Co Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

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.

Following our analysis of the options activities associated with Merck & Co, we pivot to a closer look at the company's own performance.

Where Is Merck & Co Standing Right Now?

• Currently trading with a volume of 7,710,730, the MRK's price is down by -0.3%, now at $92.87.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 51 days.

Expert Opinions on Merck & Co

5 market experts have recently issued ratings for this stock, with a consensus target price of $108.6.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from BMO Capital has decided to maintain their Market Perform rating on Merck & Co, which currently sits at a price target 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. * Maintaining their stance, an analyst from Citigroup continues to hold a Buy rating for Merck & Co, targeting a price of $115. * An analyst from Guggenheim has decided to maintain their Buy rating on Merck & Co, which currently sits at a price target of $115. * Reflecting concerns, an analyst from Deutsche Bank lowers its rating to Hold with a new price target of $105.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Merck & Co options trades with real-time alerts from Benzinga Pro.