Pharma Stock's Rally Stalling Out at Technical Resistance
By
Schaeffer's Digital Content Team
| February 20, 2026, 2:14 PM
Subscribers to Schaeffer's Weekend Trader options recommendation service received this MRK commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
Shares of drug-maker Merck (MRK) stalled on the charts at the early 2024 pivot breakdown level. The equity is also losing steam around resistance at the $120 zone, with the final decent call open interest (OI) level at the 125 strike.
There’s a heavy skew toward calls in the options pits. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Merck stock's 10-day buy-to-open call/put volume ratio of 5.09 sits in the 83rd percentile of its annual range.
Options are the route, though, with the stock’s Schaeffer’s Volatility Index (SVI) checking in at the 10th percentile of its annual range. Our recommended April put has a leverage ratio of 9.0 and will double on a 10.1% drop in the underlying equity.
There’s a heavy skew toward calls in the options pits. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Merck stock's 10-day buy-to-open call/put volume ratio of 5.09 sits in the 83rd percentile of its annual range.
Options are the route, though, with the stock’s Schaeffer’s Volatility Index (SVI) checking in at the 10th percentile of its annual range. Our recommended April put has a leverage ratio of 9.0 and will double on a 10.1% drop in the underlying equity.
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