Merck Offering Possible 10.38% Return Over the Next 33 Calendar Days

Merck's most recent trend suggests a bullish bias. One trading opportunity on Merck is a Bull Put Spread using a strike $47.00 short put and a strike $42.00 long put offers a potential 10.38% return on risk over the next 33 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $47.00 by expiration. The full premium credit of $0.47 would be kept by the premium seller. The risk of $4.53 would be incurred if the stock dropped below the $42.00 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 74.16 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Merck

Options Action: Wealth in health stocks?
Mon, 18 Nov 2013 22:38:00 GMT
CNBC – Trading heavy action in the drug company space, with CNBC contributor Brian Stutland, Stutland Volatility Group.

JPMorgan's Stock Unhindered By Legal Troubles
Mon, 18 Nov 2013 20:11:00 GMT
Forbes – The headlines BP endured in April, 2010 were ugly. The Deepwater Horizon explosion killed 11 workers and spilled millions of gallons of oil into the Gulf of Mexico. From a public relations standpoint, the camera-feed of oil gushing from the unplugged well into the blue waters of the Gulf was […]

U.S. Senate backs bill to regulate big drug compounders
Mon, 18 Nov 2013 19:55:40 GMT
Reuters – The U.S. Senate on Monday approved a bill designed to prevent the type of quality control problems that lead last year to a deadly outbreak of fungal meningitis that was traced to a tainted pharmaceutical mixed by a Massachusetts pharmacy. The bill, known as the Drug Quality and Security Act, will give the Food and Drug Administration greater authority to regulate companies that compound sterile drugs and ship them across state lines. The bill was passed earlier by the House of Representatives and is expected to be signed into law by President Barack Obama within days. The legislation draws a distinction between traditional compounding pharmacies, which will continue to be regulated by state boards of pharmacy, and large-scale compounding pharmacies such as the New England Compounding Center in Framingham, Massachusetts, which was at the heart of the meningitis outbreak that killed more than 50 people.

Dow Crosses 16,000 Despite Merck's Fall
Mon, 18 Nov 2013 19:34:06 GMT
Motley Fool – Merck and Big Pharma have had a slow day, but a strong showing from financials and industrials helped the Dow soar to new heights.

Cholesterol Guidelines Move Forward as Risk Tool Debated
Mon, 18 Nov 2013 19:26:47 GMT
Bloomberg – Concerns raised by two Harvard researchers over new treatment guidelines for heart risk shouldn’t change the method used for determining what patients should get cholesterol-lowering drugs, top U.S. heart …

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