Volume Spike Investor

Based upon the mixed to very cautious data on Merck & Co. (NYSE: MRK) and Schering-Plough (NYSE: SGP) study results today.  Traders have now almost triple the normal volume in SGP and almost a full day’s trading volume in MRK.  But the call options and put options activity for the current month data is starting to see major volume (as of 2:04 PM EST):

MRK OPTION/Strike    Volume    OpInt
AUG08 $35.00 CALL    3,527    2,074
AUG08 $37.50 CALL    17,837    16,345
AUG08 $40.00 CALL    8,734    13,021
AUG08 $32.50 PUTS    4,193    1,224
AUG08 $35.00 PUTS    12,606    5,866
AUG08 $37.50 PUTS    1,006    49,868

SGP OPTION/Strike    Volume    OpInt
AUG08 $20.00 CALL    30,258    13,397
AUG08 $22.50 CALL    45,483    27,356
AUG08 $25.00 CALL    4,384    12,693
AUG08 $15.00 PUTS    14,895    3,820
AUG08 $17.50 PUTS    31,046    9,699
AUG08 $20.00 PUTS    12,861    13,500

These are now the most active stock options traded today.

Jon C. Ogg
July 21, 2008