Merck (MRK) Options Signal Bullish Bias: Key Call Strikes and Strategic Entry Points for 2026

• MRK trades at $107.77, down 1.3% from its 52-week high of $109.27
• Options data shows 62% more open interest in calls than puts, with heavy call buying at $110–$115 strikes
• Merck’s JPM26 presentation highlighted $70B+ long-term revenue targets and rare-disease growth catalysts

Here’s the takeaway: Merck’s options market is painting a clear picture of optimism. With calls dominating open interest and technicals still bullish, this stock is set up for a rebound—but only if it holds above $101.12. Let’s break down why this matters for your watchlist today.

Bullish Sentiment in the Striking Zones

The options market isn’t whispering—it’s shouting. For Friday’s expirations (Jan 16), the MRK20260116C110 and MRK20260116C115 calls lead the pack with 15,630 and 15,458 open contracts respectively. That’s not just noise; it’s a bet that MRK will reclaim its $110 handle before the weekend. Meanwhile, puts are clustered at extreme levels like $75 and $95, suggesting downside protection is only a concern for ultra-pessimists. The 0.67 put/call ratio (by open interest) confirms this: traders are pricing in a rally, not a collapse.

No major block trades skewed the data today, so we’re looking at organic retail and institutional positioning. The risk? If MRK dips below its 30-day support at $100.84, those $110–$115 calls could turn into expensive premiums. But right now, the technicals still align: RSI at 76.5 hints at overbought territory, but the 3.13 MACD above its 2.96 signal line keeps the bullish flag flying.

News That Fuels the Fire

Merck’s JPM26 presentation isn’t just corporate fluff—it’s a blueprint for growth. The company’s $70B+ long-term revenue target by the mid-2030s, driven by Keytruda’s ecosystem and rare-disease bets like pimicotinib, is exactly what options buyers are pricing in. CEO Rob Davis’ comments about Keytruda’s "hill, not a cliff" post-LOE scenario ease fears about 2028, while the FDA’s acceptance of pimicotinib’s NDA adds a near-term catalyst.

But here’s the catch: investors need to separate hype from reality. Mavenclad’s U.S. exclusivity loss is a near-term headwind, and the stock’s current price reflects mixed signals. The key is whether Merck’s growth pillars can offset these challenges—something the options market seems to believe.

Trade Ideas: Calls, Breakouts, and Strategic Entries

For options traders, the MRK20260116C110 and MRK20260123C115 (next Friday’s expiration) offer the best risk/reward. If you’re bullish, buy the MRK20260116C110 at $2.25–$2.50 per contract. A close above $110 would trigger a 50%+ return in 3 days. For a longer play, the MRK20260123C115 at $1.80–$2.00 gives extra time for the stock to rally.

Stock traders should consider entries near $101.12 (30-day support) with a stop just below $100.84. First targets are the 200-day MA at $84.73 (unlikely without a crash) and the 30-day resistance at $107.22. A breakout above $109.27 (intraday high) would validate the bullish case. For a conservative play, sell covered calls against a long MRK position using the MRK20260116C110 to generate income while hedging downside.

Volatility on the Horizon

Merck’s story isn’t just about today’s price—it’s about tomorrow’s potential. The options market is pricing in a rebound, technicals still trend higher, and the fundamentals point to long-term growth. But volatility is inevitable. If MRK tests support below $101, the $95 put strikes might see action. For now, though, the data says this is a stock worth watching—and maybe even betting on. Just keep an eye on that $101.12 level. It’s the line between a rally and a retreat.