Now looks like an ideal time to bet on Merck stock's next leg higher
Merck & Co., Inc. (NYSE:MRK) has just pulled back to the $90 level after its recent all-time high, a level that served as prior resistance. Plus, the stock is outperforming with a 17.3% year-to-date gain and a 21.7% year-over-year lead.
Furthermore, MRK's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 95% of readings in its annual range, while its 10-day put/call volume ratio is higher than 98% of readings. This shows puts being picked up at a much faster-than-usual rate relative to the past year.
Short interest is on the rise, adding 27.1% during the most recent two-week reporting period. Finally, our recommended October 87.50 call has a leverage ratio of 8.3 and will double in an 11.4% rise in the underlying stock.
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