Merck Sees $1.41M in Unusual Put Activity as Bears Target $120 and $105 Strikes

May 13, 2026

By TrendSpider Editor

Merck Sees $1.41M in Unusual Put Activity as Bears Target $120 and $105 Strikes

Merck & Company, Inc. is drawing attention in the options market today with two notable put contracts totaling $1,410,875 in combined premium, suggesting some traders are positioning for downside in the weeks and months ahead. MRK shares are trading at $112.75 on Wednesday, May 13, 2026, up just 0.32% on the session, leaving the stock well within its 52-week range of $73.31 to $125.14. The concentration of premium in in-the-money put contracts points to a cautious, potentially defensive posture from institutional participants.

Key Drivers of the MRK Stock Move

Main Catalyst: Two unusual put contracts were flagged today carrying a combined premium of $1,410,875. The larger of the two is a PUT at the $120 strike expiring September 18, 2026, with a size of 1,100 contracts and open interest of 65% relative change, commanding $1,380,500 in premium. A second PUT at the $105 strike expiring August 21, 2026, carries a size of 75 contracts, an open interest surge of 1,000%, and $30,375 in premium.
Bull Case: MRK shares have recovered substantially from their 52-week low of $73.31, and the current price of $112.75 reflects meaningful strength. The $105 put, while showing a dramatic 1,000% open interest spike, is out of the money, meaning the market would need to fall roughly 6.9% from current levels before that contract moves into the money. The stock's proximity to its 52-week high of $125.14 also suggests underlying demand.
Bear Case: The $120 strike put is already in the money with MRK trading at $112.75, meaning the buyer of $1,380,500 in premium is already sitting on intrinsic value and appears to be hedging or outright betting on further weakness. With expiration in September 2026, there is meaningful time for this thesis to play out. The sheer size of the premium relative to the two-contract total reinforces this as the dominant bearish signal of the day.

The forward setup for MRK is worth watching carefully. The September $120 in-the-money put represents a large, deliberate bet that either Merck's stock will struggle to reclaim levels above $120, or that the buyer is protecting a long position against a meaningful drawdown. With MRK sitting about 10% below its 52-week high, there is room for both interpretations. The 1,000% open interest surge on the $105 August put is also notable, as a spike of that magnitude often signals fresh positioning rather than a roll of an existing trade. Traders should monitor whether additional put flow accumulates at these strikes in the sessions ahead, as sustained activity would reinforce the bearish narrative building in Merck's options market.

MRK Unusual Options Activity

Contract 1: PUT | Strike: $120 | Expiry: September 18, 2026 | Volume/Size: 1,100 | Open Interest Change: 65% | Status: In the Money | Premium: $1,380,500
Contract 2: PUT | Strike: $105 | Expiry: August 21, 2026 | Volume/Size: 75 | Open Interest Change: 1,000% | Status: Out of the Money | Premium: $30,375

Both flagged contracts are puts, with zero calls appearing in today's unusual activity scan. The total premium across both contracts is $1,410,875, and the directional lean is entirely bearish with no offsetting call flow detected.

MRK Seasonality

Mid-May has historically been a transitional period for large-cap pharmaceutical names as first-quarter earnings cycles wind down and investor focus shifts to pipeline catalysts and summer trading volume. Options positioning now for August and September expirations suggests traders are looking past near-term noise and betting on a broader directional move by late summer.

MRK Relative Performance

MRK is up 0.32% on the session at $112.75, a modest positive move that stands in contrast to the bearish options positioning being established today. The stock remains well above its 52-week low of $73.31, representing a gain of over 53% from that trough, but it still sits approximately 10% below its 52-week high of $125.14, leaving meaningful overhead resistance that the bears in today's options flow appear to be counting on.