Pharma Stock Pops on Wells Fargo Upgrade

Core Insights - Merck & Co (NYSE:MRK) stock has increased by 4% to $101.64 following an upgrade from Wells Fargo to "overweight" and a price target increase from $90 to $125, attributed to business development and pipeline progress, alleviating concerns over the loss of Keytruda exclusivity [1] Stock Performance - The stock is currently trading at its highest levels since January, marking a positive shift for 2025, with an approximate 18% increase in November and trading above all daily moving averages [2] - The 14-day relative strength index (RSI) is at 92.8, indicating that the stock is in "overbought" territory, suggesting a potential short-term dip may occur [2] Options Activity - There has been an increase in call options activity, with a 50-day call/put volume ratio of 3.06 at major exchanges, ranking higher than 84% of readings from the past year [3] - The current options are considered reasonably priced, with the Schaeffer's Volatility Index (SVI) at 27%, placing it in the low 15th percentile of its annual range [3]