MRKMerck & Co., Inc.
Options Analysis Report•PHARMACEUTICAL PREPARATIONS
Market Cap $294.1B|NYSE
● 2026-04-17$119.07
NEUTRAL
Analysis: 2026-04-16 EOD data
1Y +52.9%YTD +11.9%7D -1.9%
Options Vol
30,650
30D
Implied Move
±10.2%
IV Rank
65%
MRK Options Overview
Mixed signals. No clear edge detected.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
5.5
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks6/9 checks passed
IV Rank
≤35%IV Rank 38.6% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 1.50x — IV premium over HV
Sector Relative≤50%
Sector percentile 30% — below sector median
Term Structure
<1.1xFront/Back 0.95x — contango
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 32.8% — normal range
Spread-Adjusted Value
<80%Effective IV 57.8% (ATM 32.8% + spread 12.5% + bias) — good value
Execution Efficiency
<3.0%Total drag 28.30% (spread 12.51% + slippage 15.79%) — high friction
Vega Efficiency
≥5.0Vega efficiency 34.04 (vega 42.579 / spread 12.51%) — efficient
Sentiment
Bullish or bearish?
5.3
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksNeutral - Moderate signal (Conviction: +2%, Raw: -2%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +2% (neutral) — Raw: -2%
OI Skew Magnitude
≥15%|OI skew| 15.0% — call-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew -2.2%, OI skew +15.0% — divergent (opposite)
Conviction Quality
≥2/3 conditions0-DTE 13%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: -35%, ATM: -37%, OTM: +6% — strong bearish (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 58% — bearish vs sector
Activity
Unusual activity?
4.3
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks2/9 checks passed
Volume Surge
≥1.5xVolume 1.6x avg — elevated
Turnover Rate
≥15%Vol/OI 5.7% — 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 +3.1% (5d) — building
Sector Relative≥60%
Sector activity percentile 80% — active vs sector
Trade Quality
≥30%Large trade volume 16% — mixed
Execution Urgency
≥60%Aggressive execution 38% — patient
Flow Conviction
≥30Conviction +2 (bullish) — mixed
Liquidity
Can I trade efficiently?
4.7
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks4/8 checks passed
Tradeable Spread
≤5.0%Spread 12.5% — wide
Adequate OI
≥10,000OI 538,421 — deep
Active Volume
≥500Volume 30,650/day — active
Reasonable Cost
≤$0.50$0.63 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 34% — tighter than sector
Order Book Depth
≥100 contractsDepth 318.5 contracts (bid:163.7 ask:154.8) — adequate
Execution Quality
<1.0%Avg slippage 15.79% — poor
Timing
Is now a good time?
7.2
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks6/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope -5.3% — contango
IV Percentile Clarity
<30 or >70IV percentile 39% — neutral
Event Detection
≥10pts kinkIV kink -3.4pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 1917.96 — favors income trades
Expiration Distribution
≥3 expirations5 liquid expirations — flexible
Event Risk
≥60% (safe)acceptable: Earnings in 13d
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow +2% @ 51% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 46 (ITM 20% + inst 16%) — moderate institutional
Directional Strategy Fit
Option Buyers
Long Calls5.6
bullishIV fair, mixed flow
Long Puts5.4
bearishIV fair, mixed flow
Premium Sellers
Cash-Secured Put5.2
bullishIV fair, mixed flow
Covered Call5.0
bearishIV fair, mixed flow
For educational purposes only. Not investment advice.