Skip to main content

Brian - Fast Money 360: Merck

Yesterday on Fast Money 360, Brian talked about the option side to Merck. Volatility has moved over the last 8 quarters and it is averaging a 6% move after earnings. We are seeing traders buy put protection to the downside. At this level, Brian is not a huge buyer, he wants to see a super spike in volatility in the options market before he starts to buy Merck.

Brian on Merck

Comments

Popular posts from this blog

Morning Update

Yesterday JC Penny reported what some are calling “The Worst Quarter in the History of Retail.” The company reported a quarterly loss of $2.51 per shares and that revenue dropped 24.8%. Revenue at stores open for at least a year fell 31.7% and customer traffic dropped 17% last quarter following a 10% decrease in third quarter. Not surprisingly these dismal numbers spurred option traders to make some large bearish bets on the stock. The biggest was the purchase of 30,000 May 16 puts for $1.57 with the stock at 17.50. This trade will be profitable if JCP is below 14.43, 17.5% lower, by May expiration. One of the biggest concerns investors should have in JC Penny’s cash supply. In November they told investors that they would end the year with $1 billion in cash, but ended up with only $930 million. Wednesday they then told investors that they had delayed $85 million in payments to their suppliers until the early part of the first quarter. This is another red flag that the company is run...