Merck (MRK) with a large trade Thursday, as 10,000 of the April $40 calls are sold and 10,000 of the January 2011 $40 calls are bought for a $1.04 calendar call spread. There has also been the sale of around 10,000 February $40 calls today, so the move higher may be slow, but looking for Merck to be above $40 next year, and look for volatility to come down. Shares have been consolidating above the 200 week EMA and do appear to have upside potential to $45 over time. At 10.8X earnings and with a 4% dividend yield, Merck seems to be a strong play for 2010.

2 users commented on " Merck (MRK) $37.72 +0.0% "
Follow-up comment rss or Leave a TrackbackTimespread on Merck. Me likely.
Thanks Joe.
http://optionshawk.com/
Next year is a long ways away…..Thinkin of $RND puts against one of the stocks i like eventually, but haven’t checked the ISE $RND weightig as of late.
Happy Friday all…..
out some $RDN calls here….