Huge Unusual Put Options Volume in Merck Is MRK Stock Overvalued? Merck & Co. , Inc. 's (MRK) rapid ascent to new highs has raised questions about whether the stock is due for a correction.
An unusually large volume of put options trading at a lower strike price suggests that investors are betting against MRK's continued rise. Over 7,000 contracts have been traded at the $135.
00 strike price, which is 70 times the prior number of outstanding put contracts. This level of buying indicates that investors are indeed skeptical about MRK's prospects, but why?