Call Options on MRK on 12/5/2022

Merck & Co., Inc. (MRK) operates as a healthcare company worldwide. 

It operates through two segments, Pharmaceutical and Animal Health.

The Pharmaceutical segment offers human health pharmaceutical products in the areas of oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes, as well as vaccine products, such as preventive pediatric, adolescent, and adult vaccines.

The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, and health management solutions and services, as well as digitally connected identification, traceability, and monitoring products.

It serves drug wholesalers and retailers, hospitals, and government agencies; managed health care providers, such as health maintenance organizations, pharmacy benefit managers, and other institutions; and physicians and physician distributors, veterinarians, and animal producers. 

Shares have formed a bullish "cup and handle" since the company reported its quarterly results. On October 27th, MRK reported 3rd Quarter September 2022 earnings of $1.85 per share on revenue of $15.0 billion. The consensus earnings estimate was $1.67 per share on revenue of $14.3 billion.  Revenue grew 13.7% on a year-over-year basis.

Guided Higher: The company said it expects 2022 earnings of $7.32 to $7.37 per share on revenue of $58.50 billion to $59.00 billion. The company's previous guidance was earnings of $7.25 to $7.35 per share on revenue of $57.50 billion to $58.50 billion.

We will be trading December 30th Call Options

Last Trade: $110.00

Trading Range: $71.50 to $110.98

Trade Buy 1 December $110.00 Call at $2.15 For a net debit of $2.15 Profit/Loss Analysis Breakeven at $112.15 Maximum profit is unbounded Maximum loss is ($215.00) at strike of $110.00 Closing Summary Sold 1 December $110.00 Call at $2.50

Position closed on 12/28/2022 at price of $2.50 with a 16.28% gain in 22 days.

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