Merck (MRK) Offering Possible 8.93% Return Over the Next 31 Calendar Days

Merck's most recent trend suggests a bearish bias. One trading opportunity on Merck is a Bear Call Spread using a strike $60.00 short call and a strike $65.00 long call offers a potential 8.93% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $60.00 by expiration. The full premium credit of $0.41 would be kept by the premium seller. The risk of $4.59 would be incurred if the stock rose above the $65.00 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 37.44 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

Business events scheduled for Tuesday
Mon, 15 Dec 2014 19:10:11 GMT
AP – Major business and economic events scheduled for Tuesday: WASHINGTON — Labor Department releases Consumer Price Index for February, 8:30 a.m. Tuesday. WASHINGTON — Commerce Department releases housing …

Business events scheduled for Tuesday
Mon, 15 Dec 2014 19:10:11 GMT

The Zacks Analyst Blog Highlights: Chevron, Statoil, Merck, Boeing and General Electric
Mon, 15 Dec 2014 13:24:31 GMT

MERCK & CO., INC. Financials
Sat, 13 Dec 2014 18:04:07 GMT

Merck KGaA — Moody's downgrades Merck KGaA's ratings to Baa1; negative outlook
Fri, 12 Dec 2014 16:54:04 GMT

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