Merck (MRK) Offering Possible 7.76% Return Over the Next 8 Calendar Days

Merck's most recent trend suggests a bearish bias. One trading opportunity on Merck is a Bear Call Spread using a strike $56.00 short call and a strike $61.00 long call offers a potential 7.76% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $56.00 by expiration. The full premium credit of $0.36 would be kept by the premium seller. The risk of $4.64 would be incurred if the stock rose above the $61.00 long call strike price.

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

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

The RSI indicator is at 40.66 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

FDA approves Merck's heart-attack prevention drug
Mon, 12 May 2014 11:47:42 GMT

Merck says Zontivity approved for reduction of thrombotic cardiovascular events
Mon, 12 May 2014 11:34:23 GMT

FDA Approves ZONTIVITY™ (vorapaxar), First-in-Class PAR-1 Antagonist, for the Reduction of Thrombotic Cardiovascular Events in Patients with a History of Heart Attack or with Peripheral Arterial Disease
Mon, 12 May 2014 11:30:00 GMT
Business Wire – Merck , known as MSD outside the United States and Canada, today announced that the U.S. Food and Drug Administration has approved ZONTIVITY™ for the reduction of thrombotic cardiovascular events in patients with a history of heart attack or in patients with narrowing of leg arteries, called peripheral arterial disease .

The Dow Ends the Week at Record Highs; Why Did Merck and Pfizer Fall the Most?
Sat, 10 May 2014 21:06:13 GMT

M&A frenzy as Pfizer amasses AstraZeneca critics
Sat, 10 May 2014 17:59:34 GMT

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