Merck (MRK) Offering Possible 6.84% Return Over the Next 36 Calendar Days

Merck's most recent trend suggests a bearish bias. One trading opportunity on Merck is a Bear Call Spread using a strike $57.50 short call and a strike $62.50 long call offers a potential 6.84% return on risk over the next 36 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $57.50 by expiration. The full premium credit of $0.32 would be kept by the premium seller. The risk of $4.68 would be incurred if the stock rose above the $62.50 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 28.9 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

Roche, Merck extend immunotherapy fight to breast cancer
Fri, 17 Oct 2014 06:41:05 GMT

Roche, Merck extend immunotherapy fight to breast cancer
Fri, 17 Oct 2014 06:41:05 GMT

Merck and Ranbaxy Settle Allegations of Overcharging Medicaid Programs
Thu, 16 Oct 2014 15:49:06 GMT

Will Actavis Win Competition For Allergan's Affection?
Thu, 16 Oct 2014 15:10:38 GMT

MERCK & CO. INC. Files SEC form 8-K, Other Events, Financial Statements and Exhibits
Wed, 15 Oct 2014 21:09:01 GMT

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