Merck Stock Edges Higher on FDA Vaccine Approval

Merck’s pneumococcal vaccine could become available later this summer

The U.S. Food and Drug Administration (FDA) approved Merck & Co Inc’s (NYSE:MRK) next-generation vaccine to protect adults against the pneumococcal disease. The company said the vaccine could become available later this summer, pending recommendation from the Centers for Disease Control and Prevention (CDC). In response, MRK is up 0.3% to trade at $127.90 at last check.

Over the last few months, the security has repeatedly attempted to conquer its March 27, record high of $133.08, but the $130 level keeps acting as resistance. The shares recently bounced off the 120-day moving average, though, and also rely on support from the $124 region. So far this year, MRK has added over 17%.

The options pits lean firmly bullish on MRK. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security’s 50-day call/put volume ratio of 4.57 sits higher than all but 5% of readings from the last 12 months.

Options look like a great way to weigh in on Merck stock’s next moves, per its Schaeffer’s Volatility Index (SVI) of 17% that sits higher than just 18% of annual readings. This means options traders are pricing in low volatility expectations.. 

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