MRKMerck & Co., Inc.
Options Analysis Report•PHARMACEUTICAL PREPARATIONS
Market Cap $271.8B|NYSE
● 2026-04-29$110.95
NEUTRAL
Analysis: 2026-04-28 EOD data
1Y +30.2%YTD +4.2%7D -3.2%
Options Vol
21,729
30D
Implied Move
±10.6%
IV Rank
87%
MRK Options Overview
Mixed signals. No clear edge detected.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
3.4
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks4/9 checks passed
IV Rank
≤35%IV Rank 57.5% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 1.34x — IV premium over HV
Sector Relative≤50%
Sector percentile 56% — above sector median
Term Structure
<1.1xFront/Back 2.04x — backwardation
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 38.3% — normal range
Spread-Adjusted Value
<80%Effective IV 65.0% (ATM 38.3% + spread 13.3% + bias) — good value
Execution Efficiency
<3.0%Total drag 17.86% (spread 13.33% + slippage 4.53%) — high friction
Vega Efficiency
≥5.0Vega efficiency 20.31 (vega 27.075 / spread 13.33%) — efficient
Sentiment
Bullish or bearish?
5.5
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksVery Bullish - Moderate signal (Conviction: +33%, Raw: +19%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +33% (strong bullish) — Raw: +19%
OI Skew Magnitude
≥15%|OI skew| 7.4% — balanced
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew -19.2%, OI skew +7.4% — divergent (opposite)
Conviction Quality
≥2/3 conditions0-DTE 0%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: -6%, ATM: -15%, OTM: +29% — neutral (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 81% — very bearish vs sector
Activity
Unusual activity?
4.2
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks1/9 checks passed
Volume Surge
≥1.5xVolume 1.1x avg — normal
Turnover Rate
≥15%Vol/OI 4.7% — normal turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change +2.3% (5d) — building
Sector Relative≥60%
Sector activity percentile 51% — neutral vs sector
Trade Quality
≥30%Large trade volume 22% — mixed
Execution Urgency
≥60%Aggressive execution 20% — patient
Flow Conviction
≥30Conviction +33 (bullish) — moderate
Liquidity
Can I trade efficiently?
4.0
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks3/8 checks passed
Tradeable Spread
≤5.0%Spread 13.3% — wide
Adequate OI
≥10,000OI 464,660 — deep
Active Volume
≥500Volume 21,729/day — active
Reasonable Cost
≤$0.50$0.67 to cross — expensive
Strike Coverage
≥5 strikes1 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 59% — neutral vs sector
Order Book Depth
≥100 contractsDepth 403.70000000000005 contracts (bid:131.6 ask:272.1) — adequate
Execution Quality
<1.0%Avg slippage 4.53% — poor
Timing
Is now a good time?
7.0
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks7/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +103.9% — backwardation
IV Percentile Clarity
<30 or >70IV percentile 58% — neutral
Event Detection
≥10pts kinkIV kink 30.2pts — event priced
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 820.45 — favors income trades
Expiration Distribution
≥3 expirations5 liquid expirations — flexible
Event Risk
≥60% (safe)HIGH RISK: Earnings in 1d (HIGH RISK); FOMC in 0d (HIGH)
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow +33% @ 67% consistency — moderate (bullish)
Smart Money Timing
≥40 composite scoreScore 52 (ITM 20% + inst 22%) — moderate institutional
Directional Strategy Fit
Option Buyers
Long Calls4.8
bullishIV expensive, mixed flow
Long Puts4.4
bearishIV expensive, mixed flow
Premium Sellers
Cash-Secured Put5.7
bullishIV rich premium, mixed flow
Covered Call5.4
bearishIV rich premium, mixed flow
For educational purposes only. Not investment advice.