Merck Offering Possible 9.41% Return Over the Next 38 Calendar Days

Merck’s most recent trend suggests a bullish bias. One trading opportunity on Merck is a Bull Put Spread using a strike $46.00 short put and a strike $41.00 long put offers a potential 9.41% return on risk over the next 38 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $46.00 by expiration. The full premium credit of $0.43 would be kept by the premium seller. The risk of $4.57 would be incurred if the stock dropped below the $41.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Merck is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Merck is bullish.

The RSI indicator is at 59.36 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Merck

Everyone Wins With This Biotech Buyout
Thu, 14 Nov 2013 00:46:07 GMT
Motley Fool – This biotech buyout sent shares of both companies soaring. Should investors be jumping in?

U.S. heart guidelines threaten hot new cholesterol drugs
Wed, 13 Nov 2013 23:19:42 GMT
Reuters – New U.S. guidelines on heart health that favor potent statins may threaten future use, or even approval, of a hot new class of experimental cholesterol drugs called PCSK9 inhibitors that have been billed as potential blockbuster treatments, analysts said on Wednesday. But use of Merck & Co’s widely prescribed Zetia, which is not a statin, and Vytorin, a related drug, will likely not be badly hurt anytime soon, analysts said, because doctors will need time to understand and accept the new guidelines. The Merck drugs have combined annual sales of more than $4 billion, or 10 percent of overall company revenue. “I read the new guidelines as a negative for any drugs that aren’t statins, including PCSK9 inhibitors,” said Jon LeCroy, an analyst with MKM Partners.

Merck signs cancer drug research deal with China’s BeiGene
Wed, 13 Nov 2013 17:32:42 GMT
Financial Times – Merck of Germany has signed a deal for the development of an experimental cancer drug from the Beijing-based biotech company BeiGene, in the latest sign of expansion of the fledgling life science sector …

Dow Morning Report: Merck Gets Pressured, Chevron (sort of) Celebrates, and Boeing Waits
Wed, 13 Nov 2013 16:17:53 GMT
Motley Fool – The Dow Jones Industrials dropped again this morning, with Merck, Chevron, and Boeing all posting modest declines. Find out why these stocks are moving today.

Merck May Lose Out From New Treatment Guide For Cholesterol
Wed, 13 Nov 2013 14:36:20 GMT
Seeking Alpha – Possible Impact on Merck ( MRK ) from New Statin Guidelines New treatment guidelines released by the American Heart Association in collaboration with the American College of Cardiology will impact how …

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